Wix prices $1 billion convertible senior notes due 2030

NEW YORK - Website builder platform Wix.com Ltd. (NASDAQ:WIX), which has seen an impressive 11.47% return over the past week and maintains a market capitalization of $8.61 billion, announced on Tuesday the pricing of $1 billion in convertible senior notes due 2030, upsized from the previously announced $750 million offering. According to InvestingPro data, the company operates with a moderate level of debt and has achieved 13.04% revenue growth over the last twelve months.

The zero-coupon notes will mature on September 15, 2030, and are being offered to qualified institutional buyers under Rule 144A of the Securities Act. The transaction is expected to settle on September 11, 2025.

The notes will be convertible at an initial rate of 4.7509 Wix ordinary shares per $1,000 principal amount, equivalent to a conversion price of approximately $210.49 per share. This represents a 37.5% premium to Wix’s closing share price of $153.08 on September 8. With an EBITDA of $174 million and a current ratio of 0.81, InvestingPro analysis indicates that while Wix’s short-term obligations exceed liquid assets, the company maintains strong profitability metrics. Get access to 13 additional exclusive ProTips and comprehensive financial analysis through InvestingPro’s detailed research reports.

In connection with the offering, Wix entered into capped call transactions to reduce potential dilution from conversions. The cap price was set at $267.89 per share, a 75% premium over the company’s last reported share price.

Wix estimates net proceeds of approximately $977.3 million, or $1.12 billion if the initial purchasers exercise their option to buy additional notes. The company plans to use $62.5 million to pay for the capped call transactions and approximately $75 million to repurchase about 490,000 of its ordinary shares. The remaining proceeds will fund general corporate purposes, including additional share repurchases and potential acquisitions.

The notes will be Wix’s senior unsecured obligations, ranking senior to any expressly subordinated unsecured indebtedness.

The notes and potential underlying shares have not been registered under the Securities Act and may not be offered or sold in the United States without registration or an applicable exemption.

This information is based on a company press release statement. For deeper insights into Wix’s financial health, valuation metrics, and growth prospects, explore the comprehensive Pro Research Report available exclusively on InvestingPro, part of the platform’s coverage of over 1,400 US equities.

In other recent news, Wix.com Ltd. announced its plans to offer $750 million in convertible senior notes due 2030, with an option for initial purchasers to acquire an additional $112.5 million in notes. The company also revealed an expansion of its share repurchase program, adding $200 million to potentially bring the total authorization to $500 million. Since the beginning of 2025, Wix has already repurchased $300 million of its ordinary shares. CFRA upgraded Wix’s stock rating to Buy, projecting a revenue growth of 14% to $2.0 billion in 2025 and 13% to $2.3 billion in 2026, based on a strong revenue growth outlook. Citizens JMP reiterated its Market Outperform rating on Wix, despite lowering the price target from $250 to $160, citing investments in Base44 as the reason for the adjustment. These developments reflect a mix of strategic financial maneuvers and positive analyst sentiment towards Wix’s future performance.

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