07:53 AM EDT, 09/02/2025 (MT Newswires) -- Lyft ( LYFT ) said Tuesday it plans to raise $450 million through a private offering of convertible senior notes due 2030, with an option for initial purchasers to buy up to additional $50 million.

The company said the notes will be senior, unsecured obligations, with interest payable semi-annually.

Upon conversion, Lyft ( LYFT ) said it may settle the notes in cash, class A common stock, or a mix of both.

Final terms, including the interest and conversion rates, will be set at pricing, the company added.

Net proceeds from the offering will be used to fund capped call transactions to reduce dilution upon conversion, repurchase up to about $100 million of class A stock from institutional investors, and for general corporate purposes, including potential future buybacks, acquisitions, or strategic initiatives, the company said.

Additionally, Lyft ( LYFT ) said it will enter into capped call agreements with financial institutions to hedge against stock dilution.

Shares of Lyft ( LYFT ) were down more than 2% in recent premarket activity Tuesday.