Online home valuation resource Zillow Group (Z -1.10%) (ZG -1.10%) 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").
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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).
