Dave Inc. (DAVE), a financial products and services provider, on Thursday said it has priced its upsized offering of $175 million of 0% convertible senior notes due 2031, increased from the previously announced $150 million.
The company granted initial purchasers an option to buy up to an additional $25 million of notes.
The offering is expected to close on March 9, 2026.
Dave expects net proceeds of about $168 million, or approximately $192.1 million if the option for additional notes is fully exercised. It plans to use around $15.1 million to fund capped call transactions entered into alongside the offering, about $70.5 million to repurchase roughly 334,000 shares, and the remainder for general corporate purposes, including additional share buybacks.
The notes may be redeemed for cash beginning April 6, 2029, subject to certain share price conditions. They will be convertible at an initial rate of 3.5825 shares per $1,000 of notes, implying a conversion price of about $279.13 per share — a 32.5% premium to the last reported price of $210.67 on March 4, 2026.
In connection with the offering, Dave entered into privately negotiated capped call transactions designed to reduce potential dilution from conversion of the notes. The cap price is initially set at $421.34 per share, representing a 100% premium to the March 4 closing price.
Additionally, the company agreed to repurchase about 334,000 shares at $210.67 per share in privately negotiated transactions with note purchasers.
Dave shares closed at $210.67 on Wednesday, up 0.91%.
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