Bandwidth Inc. has issued $316.25 million in aggregate principal amount of 0% Convertible Senior Notes due 2032 in a private placement. The total includes the full exercise of a $41.25 million option granted to the initial purchasers. Concurrently, the company repurchased a significant portion of its existing convertible notes due 2028.
Key Details
- New Debt Issuance: Issued $316.25 million of 0% Convertible Senior Notes due July 1, 2032. The notes will not bear regular interest.
- Conversion Terms: The new notes have an initial conversion price of approximately $72.64 per share of Class A common stock.
- Existing Debt Repurchase: Repurchased approximately $122.5 million principal amount of its outstanding 0.50% convertible senior notes due 2028 for approximately $116.5 million in cash. Approximately $27.5 million of the 2028 notes remain outstanding.
- Capped Call Transactions: The company entered into capped call transactions at a cost of approximately $21.8 million to reduce potential stock dilution from the new notes, with an initial cap price of $105.66 per share.