From Pulse 2.0 · Amit Chowdhry · · 1m
Dropbox Refines Debt With $1B Notes
Dropbox plans $1 billion convertible notes to refinance debt and buy back $175 million shares.
In brief
Dropbox plans $1 billion convertible notes to refinance debt and buy back $175 million shares. Dropbox will issue $1 billion convertible notes due 2031 to refinance debt and repurchase $175 million shares. Originally reported by Pulse 2.0.
Dropbox Announces $1 Billion Notes Offering
Dropbox plans to offer $1 billion in convertible senior notes due in 2031.
Proceeds for Debt Refinance and Share Repurchase
Proceeds will refinance existing debt and support repurchasing $175 million in Class A shares.
Initial Purchaser Option for Additional Notes
Initial purchasers can buy an additional $150 million of notes, potentially raising total offering to $1.15 billion.
Convertible Notes with Interest and Conversion Terms
Notes pay interest semiannually with conversion terms established at pricing.
Share Repurchase Plan
Company will repurchase approximately $175 million of Class A shares from institutional investors.
Debt Repayment Strategy
Remaining proceeds will repay at least $750 million in existing term loan borrowings.
The big picture
Dropbox will issue $1 billion convertible notes due 2031 to refinance debt and repurchase $175 million shares.
