Lyft Raises $450M in Convertible Notes, Hims & Hers Rises Amid Lawsuit Dismissal, Constellation Brands Downgraded

Lyft has priced $450 million in convertible senior notes with a maturity date of 2030, expected to settle on September 5th and raise $438 million in net proceeds. Hims & Hers is surging after a judge dismissed a lawsuit by Eli Lilly against a similar telehealth provider, while Constellation Brands has been downgraded to "underperform" by BNP Parabas due to a lowered fiscal 2026 outlook, expecting net beer sales to decline 2-4%.

Lyft (NASDAQ: LYFT) has priced $450 million in convertible senior notes, expected to mature in 2030 and settle on September 5, 2025. The company anticipates raising $438.8 million in net proceeds [1]. These notes, which do not pay regular interest, can be redeemed for cash on or after September 20, 2028, if Lyft's stock price is at least 130% of the conversion price for a specific period. The notes are convertible at an initial conversion rate of 42.5170 shares of Class A common stock per $1,000 principal amount, equivalent to an initial conversion price of approximately $23.52 per share [1].

Hims & Hers Health Inc. (NYSE: HIMS) saw its shares jump 8.2% on Wednesday, following a federal judge's dismissal of Eli Lilly's (NYSE: LLY) lawsuit against Willow Health, a telehealth provider similar to Hims. The ruling supports the legitimacy of Hims' compounded GLP-1 medications, which are tailored to individual patient needs [2]. The company ended Q2 2025 with 2.4 million subscribers and 73% year-over-year revenue growth, driven by demand for cost-effective alternatives to branded GLP-1 treatments [2].

Constellation Brands Inc. has lowered its fiscal 2026 guidance, citing expected sales declines in its beer business. The company now anticipates comparable earnings per share of $11.30 to $11.60, down from its earlier forecast of $12.60 to $12.90. Beer sales are projected to fall 2% to 4% year-over-year, compared to prior expectations that called for results ranging from flat to growth of 3% [3]. The company remains focused on executing its long-term strategy despite the challenging macroeconomic environment.

References:
[1] https://seekingalpha.com/news/4491510-lyft-prices-debt-offering-of-450m-via-issuance-of-convertible-senior-notes
[2] https://finance.yahoo.com/news/hims-hers-gains-court-rejects-171952315.html
[3] https://rbj.net/2025/09/02/constellation-brands-cuts-fiscal-2026-outlook-on-weaker-beer-sales/