Proposes $1 Billion Offering of Convertible Senior Notes Due 2018

Posted on Mar 12 2013 - 10:10am by Karan Chopra


The enterprise cloud computing company today announced that it will raise $1 billion in convertible debt offering to help fuel acquisitions. The company shared its intention to offer $1 billion aggregate principal amount of convertible senior notes due 2018 in a private placement to qualified institutional buyers. The company believes that to grant the initial purchasers of the notes an option to purchase over an additional $150 million aggregate principal amount of the notes to cover over allotments.

Here is what has to share over the proposed plan:

The notes will be unsecured, unsubordinated obligations of, and interest will be payable semi-annually. Prior to January 1, 2018, the notes will be convertible only upon the occurrence of specified events; thereafter until maturity the notes will be convertible at any time.  Upon conversion, the notes will be settled in cash and shares of’s common stock (subject to’s right to pay cash in lieu of all or any portion of such shares).  Final terms of the notes, including the interest rate, conversion price and other terms, will be determined by negotiations between and the initial purchasers of the notes. expects to use a portion of the net proceeds for the cost of the convertible note hedge transactions after such cost is offset by the proceeds of the warrant transactions described above, and to use the remaining proceeds for general corporate purposes, including funding possible acquisitions of, or investments in, complementary businesses, services or technologies, working capital and capital expenditures.

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Karan is an internet enthusiast, who loves to explore every second thing in both technology and business.