Dropbox plans $1 billion convertible senior notes offering
DBX•Dropbox plans a private offering of $1 billion in convertible senior notes due 2031, with an option to raise up to $1.15 billion. Proceeds and cash on hand would repay at least $750 million of term loans and fund about $175 million in stock repurchases and note hedges.
1. Offering details
Dropbox plans a private offering of $1 billion in convertible senior notes due 2031. Initial purchasers would have a 13-day option to buy another $150 million, potentially bringing the offering to $1.15 billion. Interest and conversion rates will be set at pricing.
2. Planned use of proceeds
Dropbox would use remaining proceeds, together with cash on hand, to repay at least $750 million of term loan borrowings. Other proceeds would fund approximately $175 million in Class A common stock repurchases and convertible note hedges, partially offset by warrant proceeds.
