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8x8, Inc. Prices $137.5 Million of Convertible Senior Notes
CAMPBELL, Calif.--(BUSINESS WIRE)-- 8x8, Inc. (NYSE: EGHT), a leading integrated cloud communications platform provider, today announced that it has entered
About this update from 8x8 Inc
[{"type":"text","content":" CAMPBELL, Calif.--(BUSINESS WIRE)--\n8x8, Inc. (NYSE: EGHT), a leading integrated cloud communications platform provider, today announced that it has entered into separate, privately negotiated agreements with certain qualified investors to issue $137.5 million in additional aggregate principal amount of its currently outstanding 0.50% Convertible Senior Notes due 2024 (the “additional notes”) in a private placement to such investors pursuant to an exemption from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”). The additional notes will constitute a further issuance of, and form a single series with, 8x8’s outstanding 0.50% Convertible Senior Notes due 2024 issued on February 19, 2019 in the aggregate principal amount of $287.5 million, and outstanding 0.50% Convertible Senior Notes due 2024 issued on November 21, 2019 in the aggregate principal amount of $75.0 million (the “existing notes” and, together with the additional notes, the “notes”). The purchase price for the additional notes is $1,007.79 per $1,000 principal amount of additional notes (which includes accrued interest from August 1, 2021). The additional notes will have substantially identical terms to the existing notes (except that they will bear a transfer restriction legend) and are expected to be fungible with the existing notes. 8x8 has committed to filing a resale registration statement with respect to the additional notes. Immediately after giving effect to the issuance of the additional notes, 8x8 will have $500.0 million aggregate principal amount of 0.50% Convertible Senior Notes due 2024 outstanding.\n\n8x8 estimates that the net proceeds from the sale of the additional notes will be approximately $134.5 million after deducting fees payable to the placement agent and other offering expenses payable by 8x8. 8x8 intends to use a portion of such proceeds to consummate the previously announced acquisition of Fuze, Inc., use a portion of such proceeds to repurchase shares of its outstanding common stock (described below) and use the remainder of such proceeds for general corporate purposes.\n\nThe additional notes are unsecured, senior obligations of 8x8, and pay interest semi-annually at a rate of 0.50% per year. Prior to October 1, 2023, the notes are convertible only under certain circumstances and during cert...