Zillow Group Plans $1 Billion Stock and Debt Offering

Plan will raise cash to roll over debt.

By Rich Smith – May 12, 2020 at 12:48PM EST

Online home valuation resource Zillow Group (Z 1.87%) (ZG 1.75%) plans to boost its liquidity even further. In twin SEC filings Tuesday, Zillow announced plans to issue:

$500 million worth of "convertible senior notes" due 2025, and
$500 million worth of Class C common stock (that's the one that trades under ticker symbol "Z").

Image source: Getty Images.

At Zillow's current stock price of just about $52 per share, the company will issue about 9.6 million new Zillow C-shares. In an accompanying press release, Zillow announced that it "intends to use the net proceeds from the Shares Offering and the Notes Offering to repurchase a portion of its outstanding 2.00% convertible senior notes due 2021" (thus rolling over old debt), but also, potentially, for "acquisitions of, or investments in, other businesses, products or technologies" (i.e. to grow the business).

Rich Smith is a contributing Motley Fool defense and stock market analyst covering publicly traded and emerging companies in defense, space, aerospace, and other sectors. Prior to The Motley Fool, Rich practiced international corporate law for Clifford Chance in Russia, and for the Russian-Ukrainian Legal Group in Moscow, Kyiv, and Washington, D.C. He holds a bachelor’s degree in international relations from the College of William & Mary, a law degree from the University of Baltimore, and a language certification from the International Institute of Russian Language & Culture in Tver, Russian Federation. The Globe and Mail once featured him as “one of the best stock pickers since 2009.”

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Zillow Group Plans $1 Billion Stock and Debt Offering

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