Zillow to raise $400 million from sale of five-year convertibles

By Stephanie N. Rotondo

Seattle, Dec. 5 – Zillow Group Inc. intends to sell $400 million of convertible senior notes due 2021, the company said in a press release on Monday.

There is a $60 million over-allotment option on the Rule 144A deal.

Conversion of the bonds will be settled in cash, class C stock or a combination thereof.

Proceeds will be used, in part, to pay the cost of capped call transactions associated with the offering. Remaining funds will be used for general corporate purposes, which may include the repurchase of 2.75% convertible senior notes due 2020 linked to subsidiary Trulia LLC, for general and administrative matters, for capital expenditures, for acquisitions or for investments in technologies or businesses that complement Zillow’s business.

Zillow is a Seattle-based real estate company.

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