Commvault Systems, Inc. (NASDAQ: CVLT) announced a $750 million offering of Convertible Senior Notes due 2030 for qualified institutional buyers.
Proceeds will be used for strategic flexibility, purchasing capped calls to offset share dilution, and potential stock repurchases.
The Notes will be Commvault's senior unsecured obligations, with maturity on September 15, 2030, unless converted, redeemed, or repurchased.
Opportunistic Capital Raise
Commvault aims to raise $750 million through Convertible Senior Notes to enhance strategic flexibility.
Strategic Use of Proceeds
Proceeds to cover capped call transactions, stock repurchases, and general corporate purposes, including acquisitions.
Senior Unsecured Obligations
The Notes will be senior unsecured obligations of Commvault with a maturity date of September 15, 2030.
- The offering provides Commvault with additional capital for potential acquisitions or strategic investments.
- Capped call transactions aim to mitigate share dilution and reduce potential cash payments upon conversion of the Notes.
Commvault's decision to offer Convertible Senior Notes demonstrates a proactive approach to capital management and strategic investment, positioning the company for future growth and flexibility in a dynamic market environment.