By Abigail W. Adams
Portland, Me., Dec. 8 – 8x8 Inc. priced a $137.5 million tap of its 0.5% convertible notes due 2024 at 100.779 with an initial conversion premium of 33.75%, according to a company news release.
The add-on will form a single series and carry the same terms as the 0.5% convertible notes due 2024 initially priced in February 2019 with a $75 million add-on in November 2019. The most recent add-on raises the total outstanding amount of the 0.5% convertible notes to $500 million.
The notes are non-callable until Feb. 4, 2022 and then subject to a 130% hurdle.
The convertibles are putable upon a fundamental change.
In connection with the pricing, the company will repurchase $45 million of common stock from the initial purchasers of the notes at $19.20 per share.
Net proceeds from the add-on are expected to be $134.5 million. Proceeds will be used to repurchase shares, for the previously announced acquisition of Fuze Inc. and for general corporate purposes.
8x8 is a San Jose, Calif.-based cloud-communications company.
| Issuer: | 8x8 Inc.
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| Amount: | $137.5 million add-on
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| Issue: | Convertible senior notes
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| Maturity: | Feb. 1, 2024
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| Coupon: | 0.5%
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| Price: | 100.779
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| Conversion premium: | 33.75%
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| Conversion price: | $25.68
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| Conversion rate: | 38.9484
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| Call options: | Non-callable until Feb. 4, 2022 and then subject to a 130% hurdle
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| Pricing date: | Dec. 7
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| Distribution: | Rule 144A
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| Total issue size: | $500 million; including $75 million add-on in November 2019 and $287.5 million issued in February 2019
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| Stock symbol: | NYSE: EGHT
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| Stock price: | $19.20 at close Dec. 7
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| Market capitalization: | $2.16 billion
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