Oddity Finance LLC plans $350 million notes offering

Published 09/06/2025, 12:14
Oddity Finance LLC plans $350 million notes offering

NEW YORK - Oddity Finance LLC, a subsidiary of consumer tech company ODDITY Tech Ltd. (NASDAQ: ODD), announced its intention to offer $350 million of exchangeable senior notes due in 2030 in a private placement aimed at qualified institutional buyers. The offering, which is subject to market conditions, may also include an additional $50 million in notes if the initial purchasers exercise their option within a specified period. The debt offering comes as ODDITY, currently valued at $4.32 billion, maintains strong financial health with an InvestingPro Overall Score of "GREAT."

The notes, which are senior, unsecured obligations guaranteed by ODDITY and its subsidiary IM Pro Makeup NY L.P., will not bear regular interest, and their principal amount will not increase over time. They are set to mature on June 15, 2030, unless they are exchanged, redeemed, or repurchased earlier.

ODDITY, which currently has $257 million in cash and an undrawn $200 million credit line, stated that the proceeds from the offering are not required for ongoing business operations but will provide additional capital to potentially pursue future opportunities. According to InvestingPro data, the company holds more cash than debt on its balance sheet and maintains a healthy current ratio of 1.86, indicating strong liquidity. The company has no immediate plans for significant acquisitions but may consider strategic mergers and acquisitions in the future.

A portion of the proceeds will also fund capped call transactions, which are intended to minimize potential dilution to ODDITY’s Class A ordinary shares upon exchange of the notes or to offset cash payments above the principal amount exchanged. The capped call transactions might influence the market price of ODDITY’s shares or the notes, especially during the pricing of the notes or when the notes are exchanged.

The notes will be exchangeable for cash, ODDITY’s Class A ordinary shares, or a combination of both, at the issuer’s discretion. The exchange is subject to certain conditions and time periods, with more flexibility for noteholders closer to the maturity date. ODDITY may redeem the notes after June 20, 2028, under specific conditions related to the trading price of its shares.

This announcement comes with the caveat that the offering is not a public solicitation, and the notes, guarantees, and shares related to the exchange of the notes will not be registered under the Securities Act or other securities laws. The information in this article is based on a press release statement. ODDITY has demonstrated impressive operational performance with a gross profit margin of 72.93% and revenue growth of 26.83% in the last twelve months. For deeper insights into ODDITY’s financial health and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with detailed analysis and actionable intelligence.

In other recent news, Oddity Tech Ltd’s first-quarter results of 2025 have caught the attention of analysts, leading Citizens JMP to raise its price target from $66 to $72. Analyst Andrew Boone attributes this adjustment to Oddity’s sustained core growth and positive guidance for the upcoming quarter. Boone also notes the potential for Oddity’s brands, IL MAKIAGE and SpoiledChild, to reach significant revenue milestones in the coming years. Additionally, Oddity Tech has been in the spotlight following a significant block trade involving 5.5 million shares sold by an entity linked to CEO Oran Holtzman. Despite the sale, which did not provide immediate financial benefits to Oddity, Holtzman has committed to a one-year lock-up agreement, maintaining his control over the majority of voting power. Meanwhile, JMP Securities has maintained its Market Outperform rating and $66 price target, highlighting Oddity’s strong marketing efforts on Meta platforms. The firm expects these efforts to support over 20% year-over-year revenue growth and sees upcoming product launches as potential catalysts for future growth. These developments underscore Oddity Tech’s strategic focus on marketing and innovation.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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