Wix plans $750 million convertible notes offering due 2030

Wix.com Ltd. (NASDAQ: WIX) announced plans to offer $750 million in convertible senior notes due 2030 through a private placement to qualified institutional buyers. The notes will carry a 0.00% interest rate and mature on September 15, 2030.

The company has granted initial purchasers a 13-day option to buy an additional $112.5 million in notes. The convertible notes will be senior, unsecured obligations that can be converted into cash, ordinary shares, or a combination at Wix's discretion.

Conversion will be limited to specific conditions and periods before March 15, 2030, after which holders may convert at any time until two trading days before maturity. Wix may redeem all notes if certain tax events occur or redeem all or portions starting September 20, 2028, if shares trade at least 130% of the conversion price for a specified period.

The company plans to enter into capped call transactions with initial purchasers or affiliates to reduce potential dilution from note conversions. These transactions may affect Wix's share price through derivative trading activities by counterparties.

Wix intends to use proceeds to pay for the capped call transactions and repurchase $50 million to $75 million of its ordinary shares concurrently with the offering. Remaining funds will support general corporate purposes, including additional share buybacks and potential acquisitions of complementary businesses or technologies.

The notes will be offered under Rule 144A to qualified institutional buyers and are not registered under the Securities Act of 1933. The offering remains subject to market conditions and other factors.

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