05:25 AM EST, 11/13/2024 (MT Newswires) -- Upstart Holdings ( UPST ) said late Tuesday it priced $425 million of convertible senior notes due 2030 in a private offering.

The company granted the initial purchasers a 13-day option to buy up to an additional $75 million of the notes. The sale is expected to settle on Friday.

The notes will bear interest at a rate of 1% per year. They will be convertible at an initial rate of 10.8702 shares of Upstart's common stock per $1,000 of notes, equivalent to an initial conversion price of about $91.99 per share.

The company said it plans to use the net proceeds from the offering for general corporate purposes.

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