Planet Labs PBC announces a private offering of $300,000,000 aggregate principal amount of Convertible Senior Notes due 2030.
The notes will be general, unsecured obligations of Planet and will bear interest payable semi-annually in arrears.
The offering includes an option for additional $45,000,000 aggregate principal amount of notes for over-allotments.
Convertible Senior Notes Due 2030
Notes are convertible into cash, shares of Planet's Class A common stock, or a combination at Planet's election.
Use of Proceeds
Planet intends to use the net proceeds for capped call transactions and general corporate purposes.
Capped Call Transactions
Planet plans to enter into capped call transactions to reduce potential dilution to its Class A common stock upon note conversion.
- The capped call transactions are expected to provide a premium of at least 100% over the last reported sale price of Planet's Class A common stock on the pricing date.
- Hedging activities by option counterparties may impact the market price of Planet's Class A common stock and notes.
Planet Labs' private offering of Convertible Senior Notes due 2030 with capped call transactions demonstrates a strategic financing move to fund corporate initiatives and manage potential dilution risks in conversion.