- Palo Alto Networks Inc (NYSE: PANW) has announced its intention to offer (subject to market conditions and other factors) $1.75 billion aggregate principal amount of convertible senior notes due 2025 in a private placement to qualified institutional buyers
Palo Alto Networks Inc (NYSE: PANW) has announced its intention to offer (subject to market conditions and other factors) $1.75 billion aggregate principal amount of convertible senior notes due 2025 in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933. And Palo Alto Networks is also expecting to grant the initial purchasers of the notes a 30-day option to purchase up to an additional $250 million aggregate principal amount of the notes, to cover over-allotments, if any. And the notes will be unsecured senior obligations of Palo Alto Networks and interest will be payable semi-annually in arrears.
The conversions of the notes will be settled in cash up to the aggregate principal amount of the notes to be converted, and in cash, shares of Palo Alto Networks’ common stock, or a combination at Palo Alto Networks’ election. The final terms of the notes — including the interest rate, initial conversion rate and other terms — will be determined by negotiations between Palo Alto Networks and the initial purchasers of the notes.
Palo Alto Networks expects to use a portion of the net proceeds of the offering of the notes for paying the cost of the convertible note hedge transactions and the remaining proceeds of the offering for general corporate purposes — which may include working capital, capital expenditures, potential acquisitions, strategic transactions, the payment of amounts due upon conversion, at maturity or upon repurchase of Palo Alto Networks’ outstanding 0.75% Convertible Senior Notes due 2023, and repurchases of Common Stock.
