fuboTV trades $205.84 million 3.25% convertibles for 7.5% convertibles

By Wendy Van Sickle

Columbus, Ohio, Jan. 2 – fuboTV entered into a privately negotiated exchange agreement with some affiliates and related funds of Mudrick Capital Management, LP, which were holders of fuboTV’s existing 3.25% convertible senior notes due 2026.

The holders exchanged $205,835,000 principal amount of the 2026 notes for $177,506,000 principal amount of the company’s new convertible senior secured notes due Feb. 15, 2029, according to an 8-K filing with the Securities and Exchange Commission.

At the company’s election for any interest period, the 2029 notes will bear interest at a rate of 7.5% in cash and 10% in kind.

Holders may convert their 2029 notes at their option in the following circumstances:

• During any calendar quarter commencing after the calendar quarter ending on March 31, if the last reported sale price per share of common stock is greater than or equal to 130% of the conversion price for each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter;

• During the five consecutive business days immediately after any five consecutive trading day period in which the trading price per $1,000 principal amount of 2029 notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price per share of common stock on such trading day and the conversion rate on such trading day;

• Upon the occurrence of certain corporate events or distributions on the company’s common stock; and

• On or after Nov. 15, 2028 until the close of business on the second scheduled trading day immediately before the maturity date.

fuboTV may cause all outstanding 2029 notes to be automatically converted, subject to some conditions, if, at any time on or after Jan. 2, 2025, the last reported sale price of the company’s common stock has been at least 200% of the conversion price then in effect for at least 20 trading days during any 30 consecutive trading day period, the last of which 20 trading days is no more than 10 trading days before the date that the company provides the notice of forced conversion. The company may only force conversion of the 2029 notes prior to, in the case of a settlement only in shares of the company’s common stock, the third scheduled trading day immediately preceding the maturity date, and in the case of a settlement in cash or in a combination of cash and shares of the company’s common stock, the 41st scheduled trading day immediately preceding the maturity date.

The initial conversion rate of the 2029 notes is 260.6474 shares of common stock per $1,000 principal amount of 2029 notes, which represents an initial conversion price of about $3.8366 per share of common stock. The conversion rate is subject to adjustment upon the occurrence of certain specified events. fuboTV will have the right to elect to settle conversions in cash, shares of its common stock or a combination of cash and shares of its common stock.

fuboTV is a New York-based sports-first live TV streaming platform.

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