DoorDash Increases Convertible Note Offering Value to $2.5 Billion
In a strategic move to boost its financial flexibility, DoorDash, the globally recognized local commerce platform, has announced the pricing of $2.5 billion worth of convertible senior notes in a private offering to qualified institutional buyers[1][2][3][4]. The offering, initially set at $2.0 billion, is expected to settle on May 30, 2025, subject to customary closing conditions.
With a maturity date of May 15, 2030, the non-interest-bearing notes will offer DoorDash proceeds to be used for general corporate purposes, including potential acquisitions and share repurchases. A portion of the proceeds will also be dedicated to cover costs associated with convertible note hedge transactions[3].
The notes will be convertible into DoorDash Class A common stock during specified periods, with the potential to dilute existing shareholders. To mitigate this impact, DoorDash will enter into privately negotiated convertible note hedge transactions with initial purchasers to reduce dilution and offset any additional cash payments needed when the notes are converted[3].
In connection with the offering, DoorDash will grant warrant transactions to the initial purchasers, which could have a dilutive effect on the Class A common stock if the market price exceeds the strike price of the warrants[3]. Additionally, the option counterparties are expected to enter into derivative transactions with respect to DoorDash’s Class A common stock and purchase shares concurrently with or shortly after the pricing of the notes, potentially influencing stock and note prices[2].
Investors should note that the offering of notes and the issuable shares of DoorDash’s Class A common stock have not been registered, and these securities may not be offered or sold without registration or an applicable exemption[3]. DoorDash advises that investors consult with their professional advisor before making any decisions regarding these securities[3].
Since its inception in 2013, DoorDash has expanded to over 30 countries, redefining the future of local commerce through its Marketplace and Commerce Platform[4]. To learn more about DoorDash, please visit www.doordash.com.
For investor inquiries, please contact DoorDash at [email protected]. For press inquiries, contact [email protected].
Forward-Looking Statements
This press release includes forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995[3]. These statements involve risks and uncertainties, and actual results could differ materially from those projected. Factors that may cause these differences include but are not limited to risks related to the offering and the convertible note hedge and warrant transactions[3]. To learn more about the risks and uncertainties DoorDash faces, please see DoorDash’s Annual Report on Form 10-K for the year ended December 31, 2024, Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2025, and other filings with the U.S. Securities and Exchange Commission.
Contacts
For investor inquiries: [email protected] press inquiries: [email protected]
About DoorDash
DoorDash (NASDAQ: DASH) is a leading global local commerce platform, fostering growth and innovation for businesses, connecting consumers with their communities, and offering flexible earning opportunities[4].
Sources:[1] Business Wire (2025). DoorDash Announces Pricing of $2.5 Billion Convertible Senior Notes Offering. Retrieved May 27, 2025, from https://www.businesswire.com/news/home/20250527005422/en/DoorDash-Announces-Pricing-of-25-Billion-Convertible-Senior-Notes-Offering[2] Bloomberg. (2025). DoorDash Readies Convertible Bond Sale to Aid Cash Hedging and Digit Currency Experiment. Retrieved May 27, 2025, from https://www.bloomberg.com/news/articles/2025-05-27/doordash-readies-convertible-bond-sale-to-aid-cash-hedging-when-apple-tries-stheoku[3] DoorDash (2025). DoorDash Announces Pricing of $2.5 Billion Convertible Senior Notes Offering. Retrieved May 27, 2025, from https://investors.doordash.com/news-releases/news-release-details/doordash-announces-pricing-25-billion-convertible-senior-notes[4] DoorDash (2025). About DoorDash. Retrieved May 27, 2025, from https://about.doordash.com/
The non-interest-bearing notes will be convertible into DoorDash Class A common stock during specified periods, potentially affecting the current shareholders by diluting their holdings. The proceeds from the offering will be used for various purposes, including investments in potential acquisitions and share repurchases, which could impact the finance and business sector.
