Afterpay to Increase Ownership of Afterpay US from 80% to 93%

​Afterpay Ltd, an Australian financial technology company, announced that it has entered into an agreement with Matrix Partners X, L.P and Weston & Co X LLC to increase its ownership of Afterpay US.

Afterpay is launching a tender offer to eligible participants under the Afterpay US, Inc. 2018 Equity Incentive Plan (US ESOP) to increase its underlying interest in Afterpay US, Inc. from 80% today to up to approximately 93%.

Afterpay also announces that it will today launch an offering of A$1.25 billion unsecured zero coupon convertible notes due 2026, with an option to upsize the offering by up to A$250 million. The Notes are convertible into fully paid ordinary shares in Afterpay.

Under the agreement with Matrix, Matrix will waive 35% of the underlying interest it holds in Afterpay US, Inc. under the Matrix Convertible Notes for approximately A$373 million in cash. The final price will be determined by reference to the reference share price of the Convertible Notes Offering. 

Concurrently, eligible US ESOP participants will be offered an ability to exchange their vested and unvested shares in Afterpay US, Inc. at the same implied valuation via the Tender Offer.