Confluent Inc. proposed to offer $1.0 billion convertible senior notes due 2027 in a private institutional placement.
The initial purchasers of the notes have 13 days to issue up to an additional $100.0 million notes.
The notes will be general unsecured obligations of Confluent and will accrue interest payable semiannually in arrears.
The notes will be convertible into cash, shares, or a combination of cash and shares of Confluent.
Confluent will use a portion of the offering proceeds over capped call transactions. The capped call transactions will help reduce the potential dilution to Confluent shares upon any conversion of notes.
Confluent will use the remaining proceeds for working capital and other general corporate purposes.
Confluent may also use a portion for acquisitions and strategic investments.
Confluent is a new category of data infrastructure designed to connect all the company’s applications, systems, and data layers around a real-time central nervous system.
The company generates revenue from the sale of subscriptions and services.
Friends Read Free