Okta plans offering of $1 billion six-year convertible notes

By Wendy Van Sickle

Columbus, Ohio, June 8 – Okta Inc. plans to price $1 billion of six-year convertible notes, according to a news release on Monday.

There is a $150 million greenshoe.

The notes will be convertible into cash, shares of Okta’s class A common stock or a combination thereof, at Okta’s election.

In connection with the pricing, Okta will enter into new capped call transactions. The proceeds will cover these costs and be used for general corporate purposes.

Also in connection with the pricing, Okta intends to enter into privately negotiated transactions with certain holders of its existing 0.25% convertible senior notes due 2023 to exchange a portion of the 2023 notes for shares of its class A common stock and cash in respect of accrued interest and any premium to the conversion value of the notes.

Okta is a San Francisco-based enterprise identity provider. The Okta Identity Cloud connects enterprises with their employees, partners and customers.

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