Dave Announces Pricing of $175 Million 0% Convertible Notes

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Dave Inc. (Nasdaq: DAVE) announced the pricing of an offering of $175 million principal amount of its 0% Convertible Senior Notes due 2031 through a private offering. The company also granted the initial purchasers an option to purchase up to an additional $25 million principal amount of notes. Dave intends to use the net proceeds from the offering to fund the cost of capped call transactions, repurchase approximately 334,000 shares of common stock, and for general corporate purposes.

Why it matters

This convertible note offering allows Dave to raise additional capital to support its growth and operations as a leading U.S. neobank and fintech pioneer. The capped call transactions are designed to reduce potential dilution to Dave's common stock upon conversion of the notes.

The details

The notes will be senior unsecured obligations of Dave, will not bear regular interest, and the principal amount will not accrete. The notes will mature on April 1, 2031, unless earlier converted, redeemed or repurchased. Dave may redeem the notes on or after April 6, 2029 if certain liquidity conditions are met and the stock price has been at least 130% of the conversion price for 20 trading days. The notes will be convertible into cash and/or shares of Dave's common stock, at the company's election. The initial conversion price represents a 32.5% premium over the last reported stock price.

• The offering is expected to close on March 9, 2026.
• The notes will mature on April 1, 2031, unless earlier converted, redeemed or repurchased.
• Dave may redeem the notes on or after April 6, 2029.

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.