Business
8x8 Announces Convertible Notes Exchange, New Issuance and Stock Repurchase
$404 million aggregate principal amount of existing notes due 2024 exchanged for $202 million aggregate principal amount of new notes due 2028 and cash $60
About this update from 8x8 Inc
[{"type":"text","content":"\n\n$404 million aggregate principal amount of existing notes due 2024 exchanged for $202 million aggregate principal amount of new notes due 2028 and cash\n\n\n$60 million share repurchase reduces shares issued and outstanding by estimated 10.7 million shares\n\n\nProceeds of new $250 million Term Loan Credit Facility led by Francisco Partners funds cash portion of convertible note exchange and share repurchase\n\n\n CAMPBELL, Calif.--(BUSINESS WIRE)--\n8x8, Inc. (NYSE: EGHT) (\"8x8\" or the \"Company\"), a leading integrated cloud communications platform provider, announced today that it has entered into privately negotiated agreements with certain of the holders of its existing 0.50% Convertible Senior Notes due 2024 (the “2024 Notes”) to exchange an aggregate of approximately $404 million principal amount of the 2024 Notes for approximately $202 million aggregate principal amount of a newly issued series of 4.00% Convertible Senior Notes due 2028 (the “New Notes”) and approximately $182 million in cash (the “Exchange”). The Exchange is expected to close on or about August 11, 2022, subject to customary closing conditions.\n\n8x8 intends to use the proceeds of a new term loan described below to fund the cash portion of the Exchange and repurchase $60 million of the Company's common stock in privately negotiated transactions at an average price per share of approximately $5.61 (equal to the closing price of the Company’s common stock on August 3, 2022) to facilitate the Exchange (the “Buyback”). These repurchases could increase, or prevent a decrease in, the market price of the Company’s common stock.\n\nInterest on the New Notes will be payable semi-annually in arrears at a rate of 4% per annum on February 1 and August 1 of each year, beginning on February 1, 2023. The New Notes will mature on February 1, 2028, unless earlier converted, redeemed or repurchased.\n\nFollowing the Exchange, Buyback and funding of the new term loan, the Company anticipates changes to its debt and share count profiles as reflected below:\n\n\nApproximately $404 million, or 81%, of the 2024 Notes exchanged for approximately $202 million of the New Notes and approximately $182 million in cash.\n\n\nTotal debt outstanding after the exchange and including the term loan facility will be approximately $548 million.\n\n\nShares issued and outstanding red...