Bandwidth Repurchases $100M of 0.50% Convertible Notes, Cuts Debt to $150M
Bandwidth repurchased $100 million principal of its 0.50% convertible senior notes due 2028 at a discount, reducing outstanding debt from $250 million to $150 million. It fully retired its 2026 notes, launched an $80 million share repurchase and projects 16% revenue and 30% adjusted EBITDA growth in 2026.
1. Repurchase Details
Bandwidth entered privately negotiated agreements to repurchase $100 million aggregate principal of its 0.50% convertible senior notes due 2028 at a discount to par, lowering the outstanding balance from $250 million to $150 million. The transactions are expected to close on March 4, 2026, subject to customary conditions.
2. Retirement of 2026 Notes
On March 1, 2026, the company fully retired its 0.25% convertible senior notes due 2026 using cash on hand. This retirement eliminates all convertible debt maturing before April 2028, simplifying the capital structure and reducing near-term debt obligations.
3. Capital Allocation Strategy
The partial repurchase and retirement of convertible notes align with a balanced capital allocation plan that includes an $80 million share repurchase program and planned record investments in AI innovation. These actions aim to strengthen the balance sheet while funding long-term growth initiatives.
4. Financial Outlook
Following record profitability and free cash flow in fourth-quarter 2025, Bandwidth projects 16% revenue growth and nearly 30% adjusted EBITDA growth for full-year 2026. This outlook underpins management’s confidence in its de-levering strategy and growth investments.