Bandwidth Inc. announced its intention to offer, subject to market conditions, $275 million in aggregate principal amount of Convertible Senior Notes due 2032 in a private offering. The company plans to use the net proceeds to fund capped call transactions, repurchase existing debt and common stock, and for general corporate purposes.
Key Details
- Offering: $275 million aggregate principal amount of Convertible Senior Notes due 2032.
- Over-Allotment Option: Initial purchasers have a 13-day option to purchase up to an additional $41.25 million in notes.
- Use of Proceeds: Funds will be used to pay for capped call transactions, repurchase up to $10 million of Class A common stock, repurchase a portion of its 0.50% convertible senior notes due 2028, and repay outstanding credit facility debt.
- Terms: The notes will be senior, unsecured obligations, with the interest rate and conversion terms to be determined upon pricing of the offering.