BlackLine, Inc. (BL), a prominent enterprise software company, announced on Wednesday the upsizing and pricing of its offering of $600 million 1.00% convertible senior notes set to mature in 2029.
This offering, increased from an initial $500 million, targets qualified institutional buyers via a private placement and is anticipated to close on May 24, 2024.
The notes, maturing on June 1, 2029, will feature an initial conversion rate of 14.6047 shares per $1,000 principal amount. This translates to an initial conversion price of roughly $68.47 per share, representing a 30% premium over BlackLine's closing share price on May 21.
BlackLine plans to utilize the anticipated net proceeds of approximately $535.2 million, combined with existing cash reserves, to repurchase around $919.8 million of its 0.00% Senior Notes due 2026, at a combined repurchase cost of approximately $848.5 million.
