Robinhood Markets said on Monday it intends to offer $2.0 billion of convertible senior notes due 2029 in a private placement to qualified institutional buyers under Rule 144A, with initial purchasers granted an option to buy an additional $200 million.
The company said it expects to use about $300 million of net proceeds to repurchase Class A common stock, a portion to fund capped call transactions, and the remainder for general corporate purposes, including organic growth, potential acquisitions and capital expenditures.
The notes will be senior, unsecured obligations maturing on October 1, 2029. The interest rate and initial conversion rate will be set at pricing. Robinhood said the capped calls are intended to offset conversion dilution up to at least a 125% premium to its share price on the pricing date.
The raise follows an active buyback programme. Robinhood repurchased $250 million of stock in Q1 2026 and refreshed its repurchase authorization to $1.5 billion in March. The company reported $5.0 billion in cash and cash equivalents at March 31, with total platform assets of $307 billion, up 39% year over year.
