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Nutanix Announces Pricing of $750 Million 0.50% Convertible Senior Notes

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Nutanix announced the pricing of $750 million aggregate principal amount of 0.50% convertible senior notes due 2029 in a private placement to qualified institutional buyers. The initial purchasers have an option to buy an additional $112.5 million within 13 days from the issuance, expected to settle on December 16, 2024.

The notes will bear interest at 0.50% per year, payable semi-annually, and will mature on December 15, 2029. Nutanix may redeem the notes on or after December 20, 2027, if the stock price reaches at least 130% of the conversion price for 20 trading days within a 30-day period.

Nutanix estimates net proceeds of approximately $734.3 million, or $844.5 million if additional notes are purchased. The proceeds will be used to repurchase $75 million of its 2027 notes, buy back $200 million worth of its Class A common stock, and for general corporate purposes. The initial conversion rate is 11.6505 shares per $1,000 principal amount, equating to $85.83 per share, a 32.5% premium over the last sale price on December 11, 2024.

Nutanix ha annunciato il prezzo di 750 milioni di dollari di obbligazioni senior convertibili allo 0,50% con scadenza nel 2029 in un collocamento privato a investitori istituzionali qualificati. Gli acquirenti iniziali hanno l'opzione di acquistare ulteriori 112,5 milioni di dollari entro 13 giorni dall'emissione, prevista per il 16 dicembre 2024.

Le obbligazioni matureranno un interesse dello 0,50% all'anno, pagabile semestralmente, e scadranno il 15 dicembre 2029. Nutanix potrà riscattare le obbligazioni a partire dal 20 dicembre 2027, se il prezzo delle azioni raggiunge almeno il 130% del prezzo di conversione per 20 giorni di trading all'interno di un periodo di 30 giorni.

Nutanix prevede incassi netti di circa 734,3 milioni di dollari, o 844,5 milioni di dollari se vengono acquistate ulteriori obbligazioni. I proventi saranno utilizzati per riacquistare 75 milioni di dollari delle sue obbligazioni del 2027, ricomprare azioni ordinarie di Classe A per un valore di 200 milioni di dollari e per esigenze aziendali generali. Il tasso di conversione iniziale è di 11,6505 azioni per ogni 1.000 dollari di valore nominale, pari a 85,83 dollari per azione, con un premium del 32,5% rispetto all'ultimo prezzo di vendita dell'11 dicembre 2024.

Nutanix anunció el precio de 750 millones de dólares de bonos senior convertibles al 0,50% con vencimiento en 2029 en una colocación privada para compradores institucionales calificados. Los compradores iniciales tienen la opción de comprar 112,5 millones de dólares adicionales dentro de los 13 días posteriores a la emisión, que se espera que se liquide el 16 de diciembre de 2024.

Los bonos devengarán un interés del 0,50% anual, pagadero semestralmente, y vencerán el 15 de diciembre de 2029. Nutanix podrá redimir los bonos a partir del 20 de diciembre de 2027, si el precio de las acciones alcanza al menos el 130% del precio de conversión durante 20 días de negociación dentro de un período de 30 días.

Nutanix estima ingresos netos de aproximadamente 734,3 millones de dólares, o 844,5 millones de dólares si se compran bonos adicionales. Los ingresos se utilizarán para recomprar 75 millones de dólares de sus bonos de 2027, recomprar acciones comunes Clase A por un valor de 200 millones de dólares y para fines corporativos generales. La tasa de conversión inicial es de 11,6505 acciones por cada $1,000 de monto principal, equivalente a $85.83 por acción, un 32.5% por encima del último precio de venta del 11 de diciembre de 2024.

Nutanix는 2029년 만기 0.50% 전환 선순위채권의 총 원금 7억 5천만 달러 가격을 자격 있는 기관 투자자에게 개인적으로 배정했다고 발표했습니다. 초기 구매자는 발행일로부터 13일 이내에 추가로 1억 1천2백50만 달러를 구매할 수 있는 옵션이 있으며, 이는 2024년 12월 16일에 정산될 예정입니다.

채권은 연 0.50%의 이자를 지급하며, 반기마다 지급되고, 2029년 12월 15일에 만기가 됩니다. Nutanix는 주가가 30일간의 기간 내 20 거래일 이상 동안 전환 가격의 130%에 도달하면 2027년 12월 20일 이후 채권을 상환할 수 있습니다.

Nutanix는 약 7억 3천4백30만 달러의 순수익을 예상하고 있으며, 추가 채권 구매 시 8억 4천4백50만 달러가 될 수 있습니다. 이 수익은 2027년 채권 7천5백만 달러를 재구매하고, 클래스 A 보통주 2억 달러를 재매입하며, 일반 기업 용도로 사용될 것입니다. 초기 전환 비율은 1,000달러 원금당 11.6505주로, 주당 85.83달러에 해당하며, 2024년 12월 11일의 마지막 판매 가격에 비해 32.5%의 프리미엄입니다.

Nutanix a annoncé le prix de 750 millions de dollars d' arrivant à échéance en 2029 dans le cadre d'un placement privé auprès d'acheteurs institutionnels qualifiés. Les acheteurs initiaux ont la possibilité d'acheter 112,5 millions de dollars supplémentaires dans les 13 jours suivant l'émission, qui devrait se régler le 16 décembre 2024.

Les bonds porteront un intérêt de 0,50% par an, payable semestriellement, et arriveront à échéance le 15 décembre 2029. Nutanix pourra racheter les obligations à partir du 20 décembre 2027, si le prix de l'action atteint au moins 130% du prix de conversion pendant 20 jours de négociation sur une période de 30 jours.

Nutanix estime des produits nets d'environ 734,3 millions de dollars, ou 844,5 millions de dollars si des obligations supplémentaires sont achetées. Les produits seront utilisés pour racheter 75 millions de dollars de ses obligations de 2027, racheter pour 200 millions de dollars de ses actions ordinaires de classe A, et pour des besoins d'entreprise générale. Le taux de conversion initial est de 11,6505 actions pour chaque 1 000 dollars de principal, soit 85,83 dollars par action, ce qui représente une prime de 32,5% par rapport au dernier prix de vente du 11 décembre 2024.

Nutanix hat den Preis von 750 Millionen Dollar für 0,50% umwandlungsfähige Senior Notes mit Fälligkeit 2029 in einer privaten Platzierung an qualifizierte institutionelle Käufer bekannt gegeben. Die ursprünglichen Käufer haben die Option, innerhalb von 13 Tagen nach der Emission weitere 112,5 Millionen Dollar zu kaufen, die voraussichtlich am 16. Dezember 2024 abgewickelt werden.

Die Anleihen werden einen Zinssatz von 0,50% pro Jahr haben, der halbjährlich zahlbar ist, und die Fälligkeit wird am 15. Dezember 2029 sein. Nutanix kann die Anleihen am oder nach dem 20. Dezember 2027 zurückkaufen, wenn der Aktienkurs für 20 Handelstage innerhalb eines 30-tägigen Zeitraums mindestens 130% des Umwandlungspreises erreicht.

Nutanix schätzt die Nettoerlöse auf etwa 734,3 Millionen Dollar, oder 844,5 Millionen Dollar, wenn zusätzliche Anleihen gekauft werden. Die Erlöse werden verwendet, um 75 Millionen Dollar ihrer Anleihen von 2027 zurückzukaufen, 200 Millionen Dollar ihrer Stammaktien der Klasse A zurückzukaufen und für allgemeine Unternehmenszwecke. Der anfängliche Umwandlungskurs beträgt 11,6505 Aktien pro 1.000 Dollar Nennbetrag, was 85,83 Dollar pro Aktie entspricht und einen Aufpreis von 32,5% gegenüber dem letzten Verkaufspreis am 11. Dezember 2024 darstellt.

Positive
  • Nutanix successfully priced $750 million in convertible senior notes, showing strong investor confidence.
  • The notes offer a low interest rate of 0.50%, reducing financing costs.
  • Proceeds will be used for strategic repurchases of 2027 notes and Class A shares, potentially increasing stock value.
Negative
  • Nutanix is assuming additional debt, which could affect future financial flexibility.
  • The interest rate, though low, still represents an additional financial obligation.
  • The repurchase of 2027 notes and Class A shares could lead to market volatility.

Insights

The $750 million convertible note offering with a 0.50% interest rate represents a strategic financial move by Nutanix. The low interest rate indicates favorable financing terms, while the conversion premium of 32.5% above current stock price balances shareholder interests. The company's plan to use $95.5 million to repurchase existing 2027 notes and $200 million for stock buybacks demonstrates effective capital management. This refinancing could improve the company's debt structure and provide additional operational flexibility with the remaining $434.3 million for general corporate purposes. The conversion price of $85.83 per share suggests confidence in future stock appreciation potential.

This debt offering comes at an opportune time with Nutanix's strong market position in hybrid multicloud computing and recent stock performance. The 0.50% interest rate reflects favorable market conditions and investor confidence in the company's creditworthiness. The simultaneous share repurchase of 3.1 million shares at $64.78 could provide near-term support for the stock price. The redemption option after December 2027 at 130% of conversion price provides flexibility while protecting noteholder interests. Market dynamics from the 2027 notes repurchase and related hedge unwinding activities could create short-term price volatility.

SAN JOSE, Calif., Dec. 11, 2024 (GLOBE NEWSWIRE) -- Nutanix, Inc. (“Nutanix”) (Nasdaq: NTNX) , a leader in hybrid multicloud computing, today announced the pricing of $750 million aggregate principal amount of 0.50% convertible senior notes due 2029 (the “notes”) in a private placement (the “offering”) to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). Nutanix has granted the initial purchasers of the notes an option to purchase up to an additional $112.5 million aggregate principal amount of the notes within a 13-day period from, and including, the initial issuance date of the notes. The sale of the notes to the initial purchasers is expected to settle on December 16, 2024, subject to satisfaction of customary closing conditions.

The notes will be senior, unsecured obligations of Nutanix. The notes will bear interest at a rate of 0.50% per year. Interest will be payable semi-annually in arrears on June 15 and December 15 of each year, beginning on June 15, 2025. The notes will mature on December 15, 2029, unless earlier converted, redeemed, or repurchased. Nutanix may not redeem the notes prior to December 20, 2027. Nutanix may redeem for cash all or a portion of the notes, at its option, on or after December 20, 2027, if the last reported sale price of Nutanix’s Class A common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which Nutanix provides a notice of redemption at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus any accrued and unpaid interest to, but excluding, the redemption date. No sinking fund is provided for the notes, which means that Nutanix is not required to redeem or retire the notes periodically. Holders of the notes will have the right to require Nutanix to repurchase for cash all or a portion of their notes upon the occurrence of a fundamental change (as defined in the indenture governing the notes) at a purchase price of 100% of the principal amount of the notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. In connection with certain corporate events or a redemption notice, Nutanix will, under certain circumstances, increase the conversion rate for holders who elect to convert their notes in connection with such corporate event or redemption notice.

Nutanix estimates that the net proceeds from the offering will be approximately $734.3 million (or approximately $844.5 million if the initial purchasers exercise their option to purchase additional notes in full), after deducting the initial purchasers’ discount and estimated offering expenses payable by Nutanix. Nutanix intends to use (i) approximately $95.5 million of the net proceeds from the offering to repurchase $75.0 million aggregate principal amount of its outstanding 0.25% Convertible Senior Notes due 2027 (the “2027 notes”) and (ii) approximately $200.0 million of the net proceeds from the offering to repurchase approximately 3.1 million shares of its Class A common stock, in each case, in privately negotiated transactions effected through one of the initial purchasers of the notes or its affiliates, acting, as Nutanix’s agent, at a purchase price per share equal to the closing price of Nutanix’s Class A common stock on December 11, 2024, which was $64.78 per share (the “Share Repurchases”). The Share Repurchases will not reduce the amount available for future repurchases under Nutanix’s existing share repurchase program. We intend to use the remaining net proceeds of the offering for general corporate purposes, including working capital, capital expenditures and potential acquisitions. From time to time, Nutanix evaluates potential acquisitions of businesses, technologies or products. Currently, however, Nutanix does not have any understandings or agreements with respect to any acquisitions.

Certain holders of the 2027 notes that Nutanix agrees to repurchase who have hedged their equity price risk with respect to such 2027 notes are expected to unwind all or part of their hedge positions by buying Nutanix’s Class A common stock and/or entering into or unwinding various derivative transactions with respect to Nutanix’s Class A common stock. Any repurchase of the 2027 notes, and the potential related market activities by holders thereof, together with the repurchase by Nutanix of any of its Class A common stock, could increase (or reduce the size of any decrease in) the market price of Nutanix’s Class A common stock, which may affect the trading price of the notes and the conversion price of the notes.

The initial conversion rate for the notes is 11.6505 shares of Nutanix’s Class A common stock per $1,000 principal amount of notes (which is equivalent to an initial conversion price of approximately $85.83 per share) and is subject to adjustment upon the occurrence of certain events. Prior to the close of business on the business day immediately preceding September 15, 2029, the notes will be convertible at the option of the noteholders upon satisfaction of specified conditions and during certain periods. On or after September 15, 2029, until the close of business on the second scheduled trading day immediately preceding the maturity date, the notes will be convertible at the option of the noteholders at any time regardless of these conditions. Conversions of the notes will be settled in cash, shares of Nutanix’s Class A common stock or a combination of cash and shares of Nutanix’s Class A common stock, at Nutanix’s election. The initial conversion price represents a premium of approximately 32.5% over the last reported sale price of Nutanix’s Class A common stock on The Nasdaq Global Select Market on December 11, 2024.

This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation, or sale in any jurisdiction in which such offer, solicitation, or sale is unlawful. Any offer of the securities will be made only by means of a private offering memorandum. The notes and the shares of Nutanix’s Class A common stock issuable upon conversion of the notes, if any, will not be registered under the Securities Act or any state securities law, and unless so registered, may not be offered or sold in the United States except pursuant to an applicable exemption from, or a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.

About Nutanix
Nutanix is a global leader in cloud software, offering organizations a single platform for running applications and managing data, anywhere. With Nutanix, companies can reduce complexity and simplify operations, freeing them to focus on their business outcomes. Building on its legacy as the pioneer of hyperconverged infrastructure, Nutanix is trusted by companies worldwide to power hybrid multicloud environments consistently, simply, and cost-effectively.

Forward-Looking Statements
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding Nutanix’s financing plans, the expected closing date of the offering, Nutanix’s intended use of the net proceeds from the offering, and the amounts of repurchases of the 2027 notes and the Share Repurchases. These statements involve risks and uncertainties that could cause actual results to differ materially, including, but not limited to, whether Nutanix will be able to consummate the offering, the final terms of the offering, the satisfaction of customary closing conditions with respect to the offering of the notes, prevailing market conditions, the anticipated use of the net proceeds of the offering of the notes, which could change as a result of market conditions or for other reasons, and the impact of general economic, industry or political conditions in the United States or internationally. Forward-looking statements may be identified by the use of the words “may,” “will,” “expect,” “intend,” and other similar expressions. These forward-looking statements are based on estimates and assumptions by Nutanix’s management that, although believed to be reasonable, are inherently uncertain and subject to a number of risks. Actual results may differ materially from those anticipated or predicted by Nutanix’s forward-looking statements. All forward-looking statements are subject to other risks detailed in Nutanix’s Quarterly Report on Form 10-K for the fiscal year ended July 31, 2024, and the risks discussed in Nutanix’s other filings with the Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, and Nutanix undertakes no obligation to revise or update this news release to reflect events or circumstances after the date hereof, except as required by applicable law.

© 2024 Nutanix, Inc. All rights reserved. Nutanix, the Nutanix logo, and all Nutanix product and service names mentioned herein are registered trademarks or unregistered trademarks of Nutanix, Inc. (“Nutanix”) in the United States and other countries. Other brand names or marks mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s). This press release is for informational purposes only and nothing herein constitutes a warranty or other binding commitment by Nutanix.


FAQ

What are the details of Nutanix's $750 million convertible senior notes?

The notes are due in 2029, bear interest at 0.50% per year, and are convertible into Nutanix Class A common stock at an initial conversion rate of 11.6505 shares per $1,000 principal amount.

What will Nutanix use the proceeds from the convertible notes for?

Nutanix will use approximately $95.5 million to repurchase 2027 notes, $200 million to repurchase Class A shares, and the remaining for general corporate purposes.

What is the conversion rate for Nutanix's new convertible senior notes?

The initial conversion rate is 11.6505 shares per $1,000 principal amount, equivalent to $85.83 per share.

When can Nutanix redeem the new convertible senior notes?

Nutanix may redeem the notes on or after December 20, 2027, if the stock price reaches 130% of the conversion price for at least 20 trading days within a 30-day period.

How much will Nutanix raise if the initial purchasers exercise their option to buy additional notes?

If the option is fully exercised, Nutanix will raise approximately $844.5 million.

What is the interest rate on Nutanix's convertible senior notes?

The notes bear an interest rate of 0.50% per year, payable semi-annually.

What impact might the repurchase of 2027 notes and Class A shares have on Nutanix's stock?

Repurchases could increase the market price of Nutanix's Class A common stock and affect the trading price and conversion price of the new notes.

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