Robinhood completes offering of $2.2bn of 0.00% convertible senior notes due 2029

Robinhood Markets, Inc (NASDAQ:HOOD) has closed its private offering of $2.2 billion in 0.00% convertible senior notes due 2029, sold to qualified institutional buyers under Rule 144A of the Securities Act.

The total includes a previously announced $2.0 billion offering and the full exercise of a $200 million option granted to initial purchasers.

"Our business continues to grow rapidly as we deliver industry-leading products to our customers," said Shiv Verma, Robinhood Chief Financial Officer. "And this transaction gives us even more strategic flexibility to invest for future growth."

Net proceeds were approximately $2.169 billion after discounts and expenses. Robinhood used about $290 million to repurchase 2.743 million shares of its Class A common stock and $123.2 million to fund capped call transactions.

The remainder, if any, will be used for general corporate purposes, including organic growth, potential acquisitions, or capital expenditures. Following the offering, Robinhood may also repurchase additional shares under its existing stock repurchase program.

The related capped call transactions are expected to reduce potential dilution upon conversion of the notes or offset cash payments exceeding the principal amount, subject to an initial cap of approximately $237.85 per share—a 125% premium to the June 22, 2026 closing price.