Robinhood Markets Raises $2B Convertible Notes with 65% Conversion Premium
HOOD•Robinhood Markets raised $2 billion of convertible notes due 2029, netting $1.97 billion to fund $290 million in share buybacks and $112 million in capped calls at a $174.42 conversion price (65% premium). June trading volume hit $269 billion through June 18, 85% of May’s total, averaging $19.2 billion per day.
1. Convertible Note Offering
Robinhood Markets completed a private offering of $2 billion zero-coupon senior convertible notes due Oct. 1, 2029, with initial purchasers granted a $200 million upsize option. The company expects net proceeds of $1.97 billion, rising to $2.17 billion if the upsize option is exercised.
2. Conversion Terms and Dilution Mitigation
The notes carry an initial conversion price of $174.42 per share, representing a 65% premium to the last equity close. Capped call transactions cap the potential conversion rate at an effective $237.85 per share (125% premium), limiting dilution at higher share prices.
3. Use of Proceeds
Robinhood plans to deploy $290 million of net proceeds into Class A common stock repurchases and $112 million toward capped call hedges, allocating the remainder to general corporate needs such as organic growth investments and potential acquisitions.
4. June Trading Volume Momentum
Through June 18, equity notional trading volume on the platform reached $269 billion (85% of May’s total), averaging $19.2 billion per trading day; options volume hit 217 million contracts, underscoring sustained user engagement and fee generation.
