DocuSign to Offer $500.0 Million of Convertible Senior Notes Due 2024

About this update from Docusign, Inc.

[{"type":"text","content":"SAN FRANCISCO, Jan. 11, 2021 /PRNewswire/ -- DocuSign, Inc. (Nasdaq: DOCU) today announced that it proposes to offer $500.0 million aggregate principal amount of convertible senior notes due 2024 (the \"notes\"), subject to market conditions and other factors. The notes are to be sold only to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the \"Act\"). DocuSign also intends to grant to the initial purchasers of the notes an option to purchase up to an additional $75.0 million aggregate principal amount of notes.\n\n \n \n \n \n \n \n\n \nThe notes will be general unsecured, senior obligations of DocuSign, and any interest will be payable semi-annually. \nThe 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 interest rate, the initial conversion rate, the offering price and other terms are to be determined by negotiations between DocuSign and the initial purchasers.\nDocuSign expects to use a portion of the net proceeds from the offering of the notes to pay the cost of the capped call transactions described below. In addition, DocuSign expects to use a significant portion of the net proceeds from the offering, together with shares of DocuSign common stock, to repurchase a significant majority of its 0.50% Convertible Senior Notes due 2023 (the \"2023 notes\") as described below. DocuSign intends to use the remainder of the net proceeds for working capital and other general corporate purposes.\nIn connection with the offering of the notes, DocuSign expects to enter into privately negotiated capped call transactions with one or more of the initial purchasers of the notes and/or their respective affiliates and/or other financial institutions (the \"capped call counterparties\"). The capped call transactions will cover, subject to customary anti-dilution...

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