The Capital Markets team advised the initial purchasers on RingCentral’s successful Rule 144A offering of 0% Convertible Senior Notes due 2026. The deal initially launched at $600 million, but was upsized to $650 million. The initial conversion price of the notes featured a premium of 52.5% up from the reference price of approximately $278 per share. In connection with the offering, RingCentral and certain investment bank dealers entered into capped call transactions, which mitigates equity dilution and/or offsets payments due upon conversion of the notes and effectively raises the conversion price of the notes to approximately $556 per share, a 100% premium over the reference price. In addition to the new offering, RingCentral also repurchased approximately $132.6 million of its 0% Convertible Senior Notes due 2023.
RingCentral. (NYSE: RNG) is a provider of software-as-a-service solutions that enables businesses to communicate, collaborate and connect.
For more information, please see RingCentral’s pricing press release for the offering.