Coinbase Increases and Extends Bond Buyback Program with Enhanced Terms – Here's What You Need to Know

cryptonews.com:

On September 5 Coinbase revealed that it would expand its bond buyback program from $150 million to $180 million. This adjustment comes as the company strives to repurchase more of its 3.625% senior notes due in 2031. 

The offer is slated to close on September 18 at 11:59 pm Eastern Time and follows a previous lukewarm response from investors. The adjustment is expected to increase investor participation.

Initially, Coinbase had set aside $150 million to buy back its bonds in early August. The interest from investors was not as strong as expected, hovewer, with only $50 million in bonds offered for repurchase. This tepid response led to speculations that investors were holding on to their bonds in the expectation of future value growth.

At the time of the initial announcement, Coinbase had accepted $50 million worth of tendered notes for repurchase. An additional $211 million in tendered notes remained unaccepted, making the total amount $261 million.

With the new terms, Coinbase will allocate $180 million for the bond buyback, a $30 million increase from the original amount. Investors whose 2031 notes are bought by the company will receive 67.5 cents on the dollar. 

The 2031 notes initially had $1 billion in principal outstanding and were first issued in September 2021. They had previously dropped to as low as 46 cents on the dollar due to concerns about Coinbase's creditworthiness but are now trading closer to the offer value.

Coinbase seems to have read the room and acted accordingly. The change in terms is expected to heighten investor interest and participation, as the company has made the bond buyback more attractive. However, it's not just the bond buyback that's making news.

In addition to modifying the bond buyback