DocuSign Prices Offering of $600.0 Million of 0% Convertible Senior Notes Due 2024

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[{"type":"text","content":"SAN FRANCISCO, Jan. 13, 2021 /PRNewswire/ -- DocuSign, Inc. (Nasdaq: DOCU) today announced that it has priced $600.0 million aggregate principal amount of 0% convertible senior notes due 2024 (the \"notes\"). The size of the offering was increased from the previously announced $500.0 million aggregate principal amount. The notes are being sold only to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the \"Act\"). DocuSign also granted the initial purchasers of the notes an option to purchase up to an additional $90.0 million aggregate principal amount of notes. The sale is expected to close on January 15, 2021, subject to customary closing conditions.\n\n \n \n \n \n \n \n\n \nThe notes will be general unsecured, senior obligations of DocuSign that will not bear regular interest, and the principal amount of the notes will not accrete. The notes will 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 will be 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 will 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 $588.9 million (or approximately $677.3 million if the initial purchasers of the notes exercise their option to purchase additional notes in full), after deducting the initial purchasers' discount and commissions and estimated offering expenses payable by DocuSign. \nDocuSign expects to use $27.3 million of the net proceeds from the offer...

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