Online travel company MakeMyTrip has closed its offering of $1.25bn in convertible senior notes due 2030.
The business also announced the full exercise of the option to purchase an additional $187.5m of the notes, culminating in a significant funding exercise for the company.
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It has also completed a public offering of 16 million ordinary shares at $90 each, with underwriters fully exercising their option to acquire an additional 2.4 million shares.
After accounting for discounts and estimated expenses, MakeMyTrip received net proceeds of approximately $1.41bn from the notes offering.
The net proceeds from both the notes offering and the equity offering are earmarked for the repurchase of Class B ordinary shares from Trip.com Group.
The notes, which are senior unsecured obligations, will be convertible into ordinary shares of MakeMyTrip at the holders’ discretion, at a rate of 8.2305 shares per $1,000 principal amount. This conversion rate is subject to adjustments based on specific conditions.
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By GlobalDataMakeMyTrip has set a conversion premium of around 35% above the public offering price of the ordinary shares.
The company retains the right to redeem the notes for cash after 10 July 2028, under certain conditions, including the tradability of the notes and the company’s share price performance.
Additionally, a “Cleanup Redemption” can be initiated if less than 10% of the aggregate principal number of notes remains outstanding.
Holders of the notes are granted the right to compel the company to repurchase their notes for cash on 3 July 2028, or upon the occurrence of a fundamental change, under specific terms.
