Rapid7 Announces Redemption of All of Its Outstanding Convertible Senior Notes due 2023

Rhea-AI Summary

Rapid7 (Nasdaq: RPD) announced a notice of redemption for its $45.352 million 1.25% convertible senior notes due 2023, effective November 30, 2021. The redemption price will be 100% of the principal plus accrued interest from August 15, 2021. Holders can convert the notes into shares of common stock until November 29, 2021, at a conversion rate of 24.0460 shares per $1,000 principal. Rapid7 plans to settle conversions through cash and stock. This move aims to enhance the company’s financial position while managing debt effectively.

Positive

• Notice of redemption of $45.352 million convertible senior notes may strengthen financial position.
• Conversion option allows holders to convert notes into common stock, potentially reducing debt.

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• None.

BOSTON, Sept. 16, 2021 (GLOBE NEWSWIRE) -- Rapid7, Inc. (“Rapid7”) (Nasdaq: RPD), a leading provider of security analytics and automation, today announced that it issued a notice of redemption for all $45,352,000 aggregate principal amount outstanding of its 1.25% convertible senior notes due 2023 (the “notes”). The redemption date shall be November 30, 2021. The redemption price with respect to any redeemed note shall equal 100% of the principal amount thereof, plus accrued and unpaid interest, if any, from August 15, 2021, to, but not including, the redemption date. On the redemption date, the redemption price will become due and payable upon each note to be redeemed, and interest thereon, if any, shall cease to accrue on and after the redemption date.

The notes may be converted by holders at any time before 5:00 p.m. (New York City time) on November 29, 2021 (the “conversion deadline date”).   The conversion rate is equal to 24.0460 shares of common stock of Rapid7 per $1,000 principal amount of the notes. Pursuant to the indenture governing the notes, the conversion rate will be increased by 0.0022 additional shares per $1,000 principal amount of the notes for conversions prior to 5:00 p.m. (New York City time) on the conversion deadline date. Rapid7 has elected to settle any conversions of the notes during the redemption period by a combination of cash and shares of Common Stock, with a specified dollar amount per $1,000 principal amount of notes equal to $1,000.

About Rapid7

Rapid7 (Nasdaq: RPD) is advancing security with visibility, analytics, and automation delivered through our Insight Platform. Our solutions simplify the complex, allowing security teams to work more effectively with IT and development to reduce vulnerabilities, monitor for malicious behavior, investigate and shut down attacks, and automate routine tasks. Over 9,300 customers rely on Rapid7 technology, services, and research to improve security outcomes and securely advance their organizations. For more information, visit our website, check out our blog, or follow us on Twitter.

Forward Looking Statements

This press release contains forward-looking statements, including, but not limited to, statements related to the planned redemption of the notes. These forward-looking statements are based on Rapid7’s current expectations and inherently involve significant risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in such forward looking statements as a result of these risks and uncertainties, which include, without limitation, risks associated with executing the redemption of the notes and events that could impact the terms of the redemption, as well as those described in Rapid7’s filings with the United States Securities and Exchange Commission, including those factors discussed under the caption “Risk Factors” in those filings. Forward-looking statements speak only as of the date of this press release and Rapid7 does not undertake any obligation to update or revise these statements, except as may be required by law.

Contacts

Rapid7 Media Relations
Caitlin Doherty
Senior Public Relations Manager
+1-857-990-4240
press@rapid7.com

Rapid7 Investor Relations
Sunil Shah
Vice President, Investor Relations
+1-857-990-4074
investors@rapid7.com

FAQ

What is the redemption date for Rapid7's convertible senior notes?

The redemption date for Rapid7's convertible senior notes is November 30, 2021.

How much principal amount is being redeemed by Rapid7?

Rapid7 is redeeming an aggregate principal amount of $45,352,000 of its convertible senior notes.

What is the conversion rate for Rapid7's convertible notes?

The conversion rate for Rapid7's convertible notes is 24.0460 shares of common stock per $1,000 principal amount.

Is there interest accrued on the redeemed notes?

Yes, accrued and unpaid interest will be added to the principal upon redemption.

When is the conversion deadline for the notes?

The conversion deadline for the notes is November 29, 2021, by 5:00 p.m. New York City time.