Box, Inc. Announces Pricing of Offering of $400 Million of Convertible Senior Notes
Box, Inc. (NYSE:BOX) has priced a private placement of $400 million in 1.50% convertible senior notes due 2029. The notes, convertible at an initial rate of 23.0102 shares per $1,000 principal amount (equivalent to $43.46 per share), represent a 30% premium over Box's last reported stock price. Box expects net proceeds of about $389.2 million, potentially rising to $447.8 million if additional purchase options are exercised.
The company plans to use $45.6 million for capped call transactions, $191.7 million to repurchase outstanding 2026 Notes, and the remainder for working capital and general corporate purposes. Box also entered into agreements to unwind a portion of existing capped call transactions, expecting to receive about $30.3 million.
Box, Inc. (NYSE:BOX) ha annunciato il prezzo di un collocamento privato di 400 milioni di dollari in note senior convertibili al 1,50% in scadenza nel 2029. Le note, convertibili a un tasso iniziale di 23,0102 azioni per ogni 1.000 dollari di valore nominale (equivalente a 43,46 dollari per azione), rappresentano un premio del 30% rispetto all'ultimo prezzo azionario riportato da Box. L'azienda prevede un incasso netto di circa 389,2 milioni di dollari, che potrebbe aumentare a 447,8 milioni di dollari se vengono esercitate opzioni di acquisto aggiuntive.
L'azienda prevede di usare 45,6 milioni di dollari per transazioni di capped call, 191,7 milioni di dollari per riacquistare note in circolazione del 2026, e il restante per capitale circolante e finalità aziendali generali. Box ha anche stipulato accordi per disfare una parte delle transazioni di capped call esistenti, prevedendo di ricevere circa 30,3 milioni di dollari.
Box, Inc. (NYSE:BOX) ha establecido el precio de una colocación privada de 400 millones de dólares en notas senior convertibles al 1,50% con vencimiento en 2029. Las notas, convertibles a una tasa inicial de 23,0102 acciones por cada 1,000 dólares de valor nominal (equivalente a 43,46 dólares por acción), representan una prima del 30% sobre el último precio de acción reportado de Box. Se espera que la empresa obtenga ingresos netos de alrededor de 389,2 millones de dólares, que podrían aumentar a 447,8 millones de dólares si se ejercen opciones de compra adicionales.
La empresa planea utilizar 45,6 millones de dólares para transacciones de capped call, 191,7 millones de dólares para recomprar notas pendientes de 2026, y el resto para capital de trabajo y propósitos corporativos generales. Box también firmó acuerdos para deshacer una parte de las transacciones de capped call existentes, esperando recibir alrededor de 30,3 millones de dólares.
박스 주식회사 (NYSE:BOX)는 2029년 만료되는 1.50% 전환형 선순위 채권 4억 달러의 사모 배치를 가격을 책정했습니다. 이 채권은 1,000달러의 액면가당 23.0102주(주당 43.46달러 상당)로 전환할 수 있으며, 이는 박스의 마지막 보고된 주가 대비 30%의 프리미엄을 나타냅니다. 박스는 약 3억 8920만 달러의 순수익을 기대하고 있으며, 추가 매입 옵션이 행사될 경우 4억 4780만 달러로 증가할 수 있습니다.
회사는 4천560만 달러를 캡드 콜 거래에 사용하고, 1억 9천170만 달러를 2026년 채권을 재매입하는 데 사용하며, 나머지는 운영 자본 및 일반 기업 목적에 사용할 계획입니다. 박스는 또한 기존 캡드 콜 거래 중 일부를 해체하기 위한 계약을 체결했으며, 약 3천30만 달러를 받을 것으로 예상하고 있습니다.
Box, Inc. (NYSE:BOX) a annoncé un placement privé de 400 millions de dollars en obligations senior convertibles à 1,50 % arrivant à échéance en 2029. Les obligations, convertibles à un taux initial de 23,0102 actions pour 1 000 dollars de montant nominal (équivalent à 43,46 dollars par action), représentent une prime de 30 % par rapport au dernier prix de l'action de Box. La société s'attend à un produit net d'environ 389,2 millions de dollars, pouvant atteindre 447,8 millions de dollars si des options d'achat supplémentaires sont exercées.
La société prévoit d'utiliser 45,6 millions de dollars pour des transactions de capped call, 191,7 millions de dollars pour racheter des obligations 2026 en circulation, et le reste pour le fonds de roulement et des fins générales d'entreprise. Box a également conclu des accords pour défaire une partie des transactions de capped call existantes, s'attendant à recevoir environ 30,3 millions de dollars.
Box, Inc. (NYSE:BOX) hat eine Privatplatzierung von 400 Millionen US-Dollar in 1,50% wandelbaren vorrangigen Anleihen mit Fälligkeit im Jahr 2029 zu einem Preis festgelegt. Die Anleihen, die zu einem anfänglichen Kurs von 23,0102 Aktien pro 1.000 US-Dollar Nennbetrag (entspricht 43,46 US-Dollar pro Aktie) wandelbar sind, stellen eine Prämie von 30% gegenüber dem zuletzt gemeldeten Aktienkurs von Box dar. Box erwartet Nettomittelzuflüsse von etwa 389,2 Millionen US-Dollar, die auf bis zu 447,8 Millionen US-Dollar steigen könnten, wenn zusätzliche Kaufoptionen ausgeübt werden.
Das Unternehmen plant, 45,6 Millionen US-Dollar für capped call-Transaktionen zu verwenden, 191,7 Millionen US-Dollar zum Rückkauf ausstehender 2026 Anleihen sowie den Rest für Betriebskapital und allgemeine Unternehmenszwecke. Box hat außerdem Vereinbarungen getroffen, um einen Teil der bestehenden capped call-Transaktionen aufzulösen, und erwartet, etwa 30,3 Millionen US-Dollar zu erhalten.
- Successful pricing of $400 million convertible senior notes
- Potential for additional $60 million through initial purchasers' option
- Expected net proceeds of $389.2 million, potentially increasing to $447.8 million
- Repurchase of $140 million principal amount of outstanding 2026 Notes
- Receipt of approximately $30.3 million from unwinding existing capped call transactions
- Increase in long-term debt with $400 million new notes
- Potential dilution of existing shareholders upon conversion of notes
- Additional interest expense of 1.50% per year on the new notes
Box's issuance of
Box's move to raise capital through convertible notes underscores its commitment to the Intelligent Content Cloud strategy. The company's ability to secure favorable terms reflects market confidence in its technology and growth prospects. Box's focus on using proceeds for "working capital and other general corporate purposes" suggests potential investments in R&D or strategic acquisitions to enhance its cloud offerings. The tech sector's rapid evolution demands continuous innovation and this capital infusion positions Box to stay competitive. However, investors should watch for concrete plans on how Box will leverage these funds to advance its technological edge in the content management and collaboration space.
This financial maneuver by Box occurs amidst a shifting landscape in the cloud storage and content management market. The company's ability to raise capital on these terms indicates investor confidence, despite intense competition from tech giants. The potential for acquisitions mentioned in the use of proceeds could be important for Box to expand its market share or diversify its offerings. The
The notes will be general senior, unsecured obligations of Box. The notes will bear interest at a rate of
Box may redeem all or any portion of the notes (subject to a partial redemption limitation), at its option, on or after September 20, 2027 and prior to the 31st scheduled trading day preceding the maturity date, if the last reported sale price of Box’s common stock has been at least
If a “fundamental change” (as defined in the indenture governing the notes) occurs at any time prior to the maturity date, holders of the notes may require Box to repurchase for cash all or any portion of their notes at a repurchase price equal to
Box estimates that the net proceeds from the offering will be approximately
In connection with the pricing of the notes, Box entered into capped call transactions with certain of the initial purchasers and/or their respective affiliates and certain other financial institutions (the “option counterparties”). The capped call transactions are expected generally to offset potential dilution to Box’s common stock upon any conversion of notes and/or any cash payments Box is required to make in excess of the principal amount of converted notes, as the case may be, with such offset subject to a cap initially equal to
Box has been advised that, in connection with establishing their initial hedges of the capped call transactions, the option counterparties or their respective affiliates may enter into various derivative transactions with respect to Box’s common stock and/or purchase shares of Box’s common stock concurrently with or shortly after the pricing of the notes. This activity could increase (or reduce the size of any decrease in) the market price of Box’s common stock or the notes at that time.
In addition, Box has been advised that the option counterparties or their respective affiliates may modify their hedge positions by entering into or unwinding various derivatives with respect to Box’s common stock and/or purchasing or selling Box’s common stock or other securities of Box in secondary market transactions following the pricing of the notes and prior to the maturity of the notes and are likely to do so in connection with any early conversion, repurchase or redemption of the notes to the extent Box unwinds a corresponding portion of the capped call transactions, or if Box otherwise unwinds all or a portion of the capped call transactions, and on each exercise date for the capped call transactions. This activity could also cause or prevent an increase or a decrease in the market price of Box’s common stock or the notes, which could affect a noteholder’s ability to convert the notes, and, to the extent the activity occurs during any observation period related to a conversion of notes, affect the amount and value of the consideration that a noteholder will receive upon conversion of its notes.
Box also expects in connection with the repurchase of a portion of its 2026 Notes, those holders of the 2026 Notes that sell their 2026 Notes to Box may enter into or unwind various derivatives with respect to Box’s common stock and/or purchase shares of Box’s common stock concurrently with or shortly after the pricing of the notes. In particular, Box expects that many holders of the 2026 Notes employ a convertible arbitrage strategy with respect to the 2026 Notes and have a short position with respect to Box’s common stock that they would close, through purchases of Box’s common stock, in connection with Box’s repurchase of the 2026 Notes. This activity could increase (or reduce the size of any decrease in) the market price of Box’s common stock, which may also affect the trading price of the notes at that time, and could have resulted in a higher effective conversion price for the notes.
In connection with the issuance of its 2026 Notes, Box entered into capped call transactions (the “existing capped call transactions”) with certain financial institutions (the “existing capped call counterparties”). In connection with the repurchase of the 2026 Notes, Box entered into agreements with certain of the existing capped call counterparties to unwind a portion of the existing capped call transactions corresponding to the principal amount of the 2026 Notes repurchased (the “unwind transactions”). In connection with the unwind transactions, Box has been advised that the counterparties to the unwind transactions or their respective affiliates expect to sell shares of Box’s common stock and/or unwind various derivatives with respect to Box’s common stock to unwind their hedge in connection with those transactions. Such activity could decrease, or reduce the size of any increase in, the market price of Box’s common stock. Box expects to receive approximately
The offer and sale of the notes, and any shares of Box’s common stock potentially issuable upon conversion of the notes, have not been, and will not be, registered under the Securities Act or any state securities laws and, unless so registered, may not be offered or sold in
This press release is neither an offer to sell nor a solicitation of an offer to buy any securities, nor shall it constitute an offer, solicitation or sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240917785505/en/
Investors:
Cynthia Hiponia/Elaine Gaudioso
ir@box.com
Media:
Kait Conetta
press@box.com
Source: Box, Inc.
FAQ
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