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Five9 Announces Exercise and Closing of the Option to Purchase Additional 0.500% Convertible Notes Due 2025
SAN RAMON, Calif.--(BUSINESS WIRE)-- Five9, Inc. (NASDAQ: FIVN), a leading provider of the intelligent cloud contact center, today announced the exercise and
About this update from Five9, Inc.
[{"type":"text","content":" SAN RAMON, Calif.--(BUSINESS WIRE)--\nFive9, Inc. (NASDAQ: FIVN), a leading provider of the intelligent cloud contact center, today announced the exercise and closing of the entire $97.5 million aggregate principal amount of the option to purchase additional 0.500% convertible senior notes due 2025 (the “notes”) in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933 (the “Act”), resulting in a total offering size of $747.5 million. The notes sold in connection with the exercise of the option to purchase additional notes have the same terms in all respects as the notes previously sold in such offering.\n\n\nThe net proceeds from the sale of the notes in connection with the exercise of the option to purchase additional notes were approximately $95.1 million, after deducting the initial purchasers’ discounts. Five9 used $11.8 million of the proceeds from the exercise of the option to purchase additional notes to enter into additional capped call transactions with the initial purchasers and/or their respective affiliates (the “option counterparties”). The remainder of the net proceeds from the offering will be used for working capital and other general corporate purposes.\n\n\nThe capped call transactions are expected generally to reduce potential dilution to Five9’s common stock upon any conversion of the notes and/or offset any cash payments Five9 is required to make in excess of the principal amount of converted notes, as the case may be, with such reduction and/or offset subject to a cap based on the cap price. The cap price of the capped call transactions will initially be $206.68 per share, which represents a premium of 100% over the last reported sale price of Five9’s common stock of $103.34 per share on May 21, 2020, and is subject to certain adjustments under the terms of the capped call transactions.\n\n\nFive9 expects that, in connection with establishing their initial hedges of the capped call transactions, the option counterparties or their respective affiliates will purchase shares of Five9’s common stock and/or enter into various derivative transactions with respect to Five9’s common stock. These activities could increase (or reduce the size of any decrease in) the market price of Five9’s common stock or the notes at that time.\n\n\nIn addition, Five9 expects t...