RingCentral Offers USD 1.0 Billion Convertible Senior Notes

RingCentral, Inc. (NYSE:RNG) has announced its intention to offer, subject to market conditions and other factors, USD 1.0 billion aggregate principal amount of convertible senior notes due 2025 (the “notes”) in a private placement, the company said.

RingCentral also expects to grant the initial purchasers of the notes an option to purchase, during a 13-day period from, and including, the initial issuance date of the notes, up to an additional USD 150 million aggregate principal amount of the notes.

The notes will be senior, unsecured obligations of RingCentral. The notes will be convertible into cash, shares of RingCentral´s Class A common stock (“common stock”), or a combination thereof, at RingCentral´s election. The conversion rate and other terms of the notes are to be determined upon pricing of the offering. The notes will also be redeemable at the option of RingCentral after a specified date if certain conditions are met.

In connection with the pricing of the notes, RingCentral expects to enter into capped call transactions with one or more of the initial purchasers or other financial institutions or their affiliates (the “hedge counterparties”).

RingCentral is a provider of global enterprise cloud communications, collaboration, and contact center solutions. More flexible and cost-effective than legacy on-premises systems, RingCentral empowers modern mobile and distributed workforces to communicate, collaborate, and connect from any location, on any device, and via any mode. RingCentral is headquartered in Belmont, California, and has offices around the world.