PagerDuty Prices Private Placement Of $350 Mln Senior Notes

(RTTNews) - PagerDuty, Inc. (PD), a cloud computing firm, announced the pricing of $350 million of 1.50 percent Convertible Senior Notes due 2028 to be privately placed with institutional buyers.

The company granted the initial purchasers of the notes an option to purchase up to an additional $52.5 million of notes. The sale of notes is scheduled to be closed on October 13.

PagerDuty expects net proceeds from the offering to be around $339.4 million, or $390.4 million, if the initial purchasers exercise their option to purchase additional notes in full.

The company intends to use a part of the proceeds to pay the cost of the capped call transactions that it entered and to repurchase certain of its 1.25 percent convertible senior notes due 2025 and shares. The remainder of the funds will be used for working capital and other general corporate purposes.

The notes will accrue interest payable semiannually in arrears on April 15 and October 15 of each year, starting on April 15, 2024, at a rate of 1.50 percent a year. The notes will mature on October 15, 2028.