Penguin Solutions prices USD 650 million 0% convertible notes due 2031
PENG•PENG•PENG•PENG•Penguin Solutions priced a USD 650 million private offering of 0.00% convertible senior notes due 2031, with a USD 100 million upsizing option.
The notes mature Aug. 1, 2031 and are expected to close around July 17, 2026. The initial conversion rate is 8.5690 shares per USD 1,000 principal amount, implying a conversion price of about USD 116.7, or a 50% premium to the July 14 close.
Net proceeds are estimated at about USD 636.9 million, or about USD 735.1 million if the upsizing option is fully exercised.
Penguin Solutions said it plans to use the proceeds for capped call costs, cash to refinance portions of its 2029 and 2030 convertible notes, repayment under a credit agreement, and general corporate purposes.
