Goodwin's Capital Markets team advised the initial purchasers on Lyft's Rule 144A offering of 0.00% Convertible Senior Notes due 2030. The $500 million offering included the full exercise of the initial purchasers' option to purchase $50 million of additional notes. The initial conversion price of the notes represents a premium of approximately 40.0% to the last reported sale price of Lyft's Class A common stock on the pricing date (the "reference price"). In connection with the offering, Lyft and certain investment bank dealers entered into capped call transactions, which mitigate equity dilution and/or offset payments due upon conversion of the notes, to synthetically increase the conversion price to 100% above the reference price. Additionally, Lyft used a portion of the net proceeds to repurchase approximately 5.7 million shares of its Class A common stock.
Lyft, Inc. (Nasdaq: LYFT) started a movement to revolutionize transportation. In 2012, Lyft launched its peer-to-peer marketplace for on-demand ridesharing and has continued to pioneer innovations. Today, Lyft is one of the largest multimodal transportation networks in the United States and Canada.
Goodwin's product team consisted of Jim Barri, John Servidio, Jonathan Burr, Christian Fan and Jason Wu. The corporate team consisted of Brad Weber, Kim de Glossop, Paul Heller, Nikki Miller and Daisy Garcia Ramos. Dan Karelitz and Garrett Gaughan provided tax advice.
For more information, please see Lyft's pricing press release for the offering.