Please ensure Javascript is enabled for purposes of website accessibility

Zillow Group Plans $1 Billion Stock and Debt Offering

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

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Plan will raise cash to roll over debt.

Online home valuation resource Zillow Group (Z -2.93%) (ZG -3.27%) 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").  
Pay off debt scrawled on a notepad

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 has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Zillow Group (A shares) and Zillow Group (C shares). The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Zillow Group, Inc. Stock Quote
Zillow Group, Inc.
$29.54 (-3.27%) $-1.00
Zillow Group, Inc. Stock Quote
Zillow Group, Inc.
$29.51 (-2.93%) $0.89

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.