According to Cointelegraph, Coinbase, a cryptocurrency exchange, will begin buying back about $150 million of its 2031 senior notes for 64.5 cents on the dollar, which is a discount of about 35.5%.
With insights from an announcement made on August 7, 2023, the tender offer is valid till September 1, 2023, with an early premium of three cents on the dollar on top of the regular purchase price. It is expected that the 2031 senior notes have a coupon rate of 3.625% per annum and a total principal balance of $1 billion, Cointelegraph added.
Sources revealed that last month, the exchange is expected to have redeemed $65 million in convertible notes at a discount of 29%. Supposedly, after the cryptocurrency bear market, Coinbase’s debt securities started trading at a discount to par value amid investor concerns about its ability to repay, Cointelegraph highlighted.
Furthermore, as per insights from a May 2022 filing with the United States Securities and Exchange Commission, Coinbase mentioned that users’ digital assets held on the platform may “be subject to bankruptcy proceedings” and could see them treated as “unsecured creditors,” Cointelegraph concluded.
(With insights from Cointelegraph)