Life360 plans $250M convertible notes offering

SAN FRANCISCO - Life360, Inc. (NASDAQ: LIF, ASX: 360), a company specializing in family connection and safety services with a market capitalization of approximately $4.9 billion, announced today its plans to offer $250 million in convertible senior notes due in 2030. The company, which boasts impressive gross profit margins of 76% and has achieved revenue growth of 26% over the last twelve months, maintains a "GREAT" financial health rating according to InvestingPro. The offering is aimed at qualified institutional buyers and is contingent on market conditions.

The notes, which are senior and unsecured, will pay interest semi-annually and are set to mature on June 1, 2030, unless they are repurchased, redeemed, or converted beforehand. The company’s strong financial position, evidenced by a healthy current ratio of 3.38 and trading near its 52-week high of $21.72, supports this strategic move. Holders of the notes will have the option to convert their notes under certain conditions and during specific periods. Life360 may choose to settle conversions in cash, shares of common stock, or a mix of both.

The company also intends to provide the initial purchasers with an option to buy an additional $37.5 million in notes within a 13-day period starting from the issuance date.

Life360 plans to use part of the proceeds from this offering to fund capped call transactions, which are designed to reduce potential dilution to its common stock upon conversion of the notes or to offset potential cash payments above the principal amount. The remainder of the net proceeds is earmarked for general corporate purposes, which may include acquisitions or strategic investments.

In relation to the capped call transactions, Life360 expects to enter into negotiations with the initial purchasers or their affiliates and other financial institutions. The transactions are expected to cover the number of shares that initially underlie the notes and reduce potential dilution or offset potential cash payments upon conversion of the notes.

The notes and any common stock that may be issued upon conversion will not be registered under the Securities Act or any state securities laws, and they will be offered under an exemption from the registration requirements.

This announcement is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy any securities. The completion and terms of the offering are subject to various factors, including market conditions. For deeper insights into Life360’s financial health and growth prospects, including 18 additional ProTips and comprehensive valuation metrics, visit InvestingPro.

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