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Five9 Announces Pricing of $650 Million Convertible Notes Offering
SAN RAMON, Calif.--(BUSINESS WIRE)-- Five9, Inc. (NASDAQ: FIVN), a leading provider of the intelligent cloud contact center, today announced the pricing of
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 pricing of $650 million aggregate principal amount of 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”). Five9 also granted the initial purchasers of the notes a 13-day option to purchase up to an additional $97.5 million aggregate principal amount of the notes.\n\n\nThe sale of the notes to the initial purchasers is expected to settle on May 27, 2020, subject to customary closing conditions, and is expected to result in approximately $633.8 million in net proceeds to Five9 after deducting the initial purchasers’ discount and estimated offering expenses payable by Five9 (assuming no exercise of the initial purchasers’ option).\n\n\nThe notes will be senior, unsecured obligations of Five9, and interest will be payable semi-annually in arrears on June 1 and December 1 of each year, beginning on December 1, 2020. The notes will mature on June 1, 2025, unless earlier converted, redeemed or repurchased. Five9 may not redeem the notes prior to June 6, 2023; on or after June 6, 2023 and prior to March 1, 2025, Five9 may redeem the notes, at its option and subject to certain conditions, as detailed below.\n\n\nFive9 expects to (i) use approximately $181.0 million of the net proceeds of the offering of the notes and (ii) issue an aggregate of 2,723,582 shares of Five9’s common stock to repurchase or exchange $181.0 million aggregate principal amount of its outstanding 0.125% convertible senior notes due 2023 (the “2023 notes”) (such transactions, the “note repurchases”). Five9 also expects to use approximately $78.7 million of the net proceeds of the offering of the notes to pay the cost of the capped call transactions described below. The remainder of the net proceeds from the offering would be used for working capital and other general corporate purposes. Five9 expects that holders of the 2023 notes that sell their 2023 notes to Five9, or exchange their 2023 notes with Five9, may enter into or unwind various derivatives with respect to Five9’s common stock and/or purchase or sell shares of Five9’s common stock in the market to hedge their exposure in connection wit...