RingCentral talks $400 million seven-year notes to yield 8½% to 8¾%; pricing Friday

By Paul A. Harris

Portland, Ore., Aug. 11 – RingCentral Inc. talked its $400 million offering of senior notes due 2030 (B1/BB/BB) to yield 8½% to 8¾%, according to market sources.

Pricing is set for Friday, an acceleration of previously announced timing that had the deal remaining in the market into the week ahead.

Official talk comes on top of initial guidance.

The offer was heard to be playing to $500 million of demand on Friday morning, a trader said.

The Rule 144A and Regulation S for life seven-year notes come with three years of call protection.

J.P. Morgan Securities LLC, BofA Securities, Inc., Wells Fargo Securities LLC, TD Securities (USA) LLC and Morgan Stanley & Co. LLC are the joint bookrunners.

A portion of the proceeds will be used to repurchase and/or repay a portion of the company’s outstanding convertible notes, with the remainder to be used for general corporate purposes which may include working capital, capital expenditures, debt repurchases or repayments, potential strategic transactions and acquisitions.

RingCentral is a Belmont, Calif.-based provider of cloud-based communication and collaboration products and services for businesses.

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