Press release
DocuSign Announces Closing of $690.0 Million of 0% Convertible Senior Notes Due 2024, including Full Exercise of Initial Purchasers' $90.0 Million Option to Purchase Additional Notes
SAN FRANCISCO, Jan. 15, 2021 /PRNewswire/ -- DocuSign, Inc. (Nasdaq: DOCU) today announced that it has closed its offering of 0% convertible senior notes due
About this update from Docusign, Inc.
[{"type":"text","content":"SAN FRANCISCO, Jan. 15, 2021 /PRNewswire/ -- DocuSign, Inc. (Nasdaq: DOCU) today announced that it has closed its offering of 0% convertible senior notes due 2024 (the \"notes\") for gross proceeds of $690.0 million, including the full exercise of the $90.0 million option to purchase additional notes granted by DocuSign to the initial purchasers. The notes were sold only to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the \"Act\").\n\n \n \n \n \n \n \n\n \nThe notes are general unsecured, senior obligations of DocuSign that do not bear regular interest, and the principal amount of the notes will not accrete. The notes mature on January 15, 2024, unless repurchased or converted in accordance with their terms prior to such date. Prior to October 15, 2023, the notes are convertible at the option of holders only upon satisfaction of certain conditions and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. Upon conversion, the notes may be settled in shares of DocuSign common stock, cash or a combination of cash and shares of DocuSign common stock, at the election of DocuSign.\nThe notes have an initial conversion rate of 2.3796 shares of DocuSign common stock per $1,000 principal amount of notes (which is subject to adjustment in certain circumstances). This is equivalent to an initial conversion price of approximately $420.24 per share. The initial conversion price represents a premium of approximately 60% to the $262.65 per share closing price of DocuSign common stock on The Nasdaq Global Select Market on January 12, 2021.\nDocuSign estimates that the net proceeds from the offering will be approximately $677.3 million, after deducting the initial purchasers' discount and commissions and estimated offering expenses payable by DocuSign. DocuSign used approximately $31.4 million of the net proceeds from the offering of the notes to pay the cost of the capped call transactions described below. In addition, DocuSign used approximately $460.0 million of the net proceeds from the offering, together with approximately 4.7 million shares of DocuSign common stock, to repurchase $460.0 million aggregate principal amount of its 0.50% Convertible Senior Notes due 2023. DocuSign intends...