- Splunk Inc (NASDAQ: SPLK) announced it intends to offer (subject to market conditions and other factors) $900 million principal amount of convertible senior notes due 2027 in a private placement to qualified institutional buyers
Today Splunk Inc (NASDAQ: SPLK) announced it intends to offer (subject to market conditions and other factors) $900 million principal amount of convertible senior notes due 2027 in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933 as amended (the “Securities Act”). And Splunk also intends to grant the initial purchasers of the notes an option to purchase up to an additional $135 million principal amount of notes.
These notes will be senior unsecured obligations of Splunk Inc (NASDAQ: SPLK) and will accrue interest payable semiannually in arrears. And the notes will be convertible into cash, shares of Splunk’s common stock, or a combination of cash and shares of Splunk’s common stock (at Splunk’s election). The interest rate, initial conversion rate, repurchase or redemption rights, and other terms of the notes will be determined at the time of pricing of the offering.
WIth this portion of the net proceeds from the offering to pay the cost of the capped call transactions described below and to repurchase for cash up to $500 million aggregate principal amount of Splunk’s outstanding 0.500% Convertible Senior Notes due 2023 (the “2023 notes”).
And Splunk intends to use the remainder of the net proceeds for working capital or other general corporate purposes. A portion of the net proceeds will be used to acquire complementary businesses, products, services, or technologies. However, it has no commitments for any acquisitions right now.
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