Varonis Systems, Inc. Announces Pricing of its Upsized $400 Million of Convertible Senior Notes
Varonis Systems, Inc. (Nasdaq: VRNS) has announced the pricing of a private offering of $400 million aggregate principal amount of 1.00% Convertible Senior Notes due 2029. The offering size was increased from the previously announced $350 million. The Notes, maturing on September 15, 2029, will be convertible at an initial rate of 14.7419 shares of the Company's common stock per $1,000 principal amount (equivalent to an initial conversion price of approximately $67.83 per share). Varonis estimates net proceeds of about $390.8 million, which will be used for working capital, general corporate purposes, and potentially for acquisitions or investments. The company has also entered into capped call transactions to reduce potential dilution.
Varonis Systems, Inc. (Nasdaq: VRNS) ha annunciato il prezzo di un'offerta privata di $400 milioni di totale capitale principale di Note Convertibili a lungo termine Senior al 1,00% con scadenza nel 2029. La dimensione dell'offerta è stata aumentata rispetto ai $350 milioni precedentemente annunciati. Le Note, in scadenza il 15 settembre 2029, saranno convertibili a un tasso iniziale di 14,7419 azioni del comune stock della Società per ogni $1,000 di capitale principale (equivalente a un prezzo di conversione iniziale di circa $67,83 per azione). Varonis stima ricavi netti di circa $390,8 milioni, che saranno utilizzati per capitale circolante, scopi aziendali generali e potenzialmente per acquisizioni o investimenti. La società ha anche avviato transazioni di call capped per ridurre la potenziale diluizione.
Varonis Systems, Inc. (Nasdaq: VRNS) ha anunciado el precio de una oferta privada de $400 millones en monto principal agregado de Notas Senior Convertibles al 1.00% con vencimiento en 2029. El tamaño de la oferta se ha incrementado de los $350 millones previamente anunciados. Las Notas, que vencerán el 15 de septiembre de 2029, serán convertibles a una tasa inicial de 14.7419 acciones de las acciones ordinarias de la Compañía por cada $1,000 de monto principal (equivalente a un precio de conversión inicial de aproximadamente $67.83 por acción). Varonis estima ingresos netos de aproximadamente $390.8 millones, que se utilizarán para capital de trabajo, fines corporativos generales y potencialmente para adquisiciones o inversiones. La compañía también ha participado en transacciones de opciones capped para reducir la posible dilución.
Varonis Systems, Inc. (Nasdaq: VRNS)는 2029년에 만료되는 1.00% 전환형 심사 노트의 총액 $4억의 사모 공모 가격을 발표했습니다. 공모 규모는 이전에 발표된 $3억 5천만에서 증가했습니다. 2029년 9월 15일 만료되는 이 노트는 $1,000의 기준액당 14.7419주의 회사 보통주로 전환될 수 있으며(초기 전환 가격은 약 $67.83 주당에 해당함), Varonis는 약 $3억 9천만의 순수익을 예상하고 있으며, 이는 운영 자본, 일반 기업 목적 및 잠재적인 인수 또는 투자에 사용될 예정입니다. 회사는 희석 가능성을 줄이기 위해 캡콜 거래에도 참여했습니다.
Varonis Systems, Inc. (Nasdaq: VRNS) a annoncé le prix d'une offre privée d'un montant principal total de $400 millions de Notes Senior Convertibles à 1,00 % arrivant à échéance en 2029. La taille de l'offre a été augmentée par rapport aux $350 millions précédemment annoncés. Les Notes, qui viennent à échéance le 15 septembre 2029, seront convertibles à un taux initial de 14,7419 actions de l'action ordinaire de la Société pour $1,000 de montant principal (équivalant à un prix de conversion initial d'environ $67,83 par action). Varonis estime des produits nets d'environ $390,8 millions, qui seront utilisés pour le fonds de roulement, les besoins généraux de l'entreprise et potentiellement pour des acquisitions ou des investissements. L'entreprise a également engagé des transactions d'options capées pour réduire la dilution potentielle.
Varonis Systems, Inc. (Nasdaq: VRNS) hat die Preisgestaltung einer privaten Emission von $400 Millionen an aggregierten Hauptbeträgen von 1,00% wandelbaren Unterschriftenanleihen mit Fälligkeit 2029 bekannt gegeben. Die Angebotsgröße wurde von den zuvor angekündigten $350 Millionen erhöht. Die Anleihen, die am 15. September 2029 fällig werden, können anfänglich zu einem Satz von 14,7419 Aktien des Stammkapitals des Unternehmens pro $1,000 Hauptbetrag umgewandelt werden (äquivalent zu einem anfänglichen Umwandlungspreis von etwa $67,83 pro Aktie). Varonis schätzt Nettoerlöse von etwa $390,8 Millionen, die für Betriebskapital, allgemeine Unternehmenszwecke und möglicherweise für Akquisitionen oder Investitionen verwendet werden sollen. Das Unternehmen hat auch capped call Transaktionen initiiert, um eine mögliche Verwässerung zu reduzieren.
- Increased offering size from $350 million to $400 million, indicating strong investor interest
- Low interest rate of 1.00% per year on the Notes
- Estimated net proceeds of $390.8 million to strengthen the company's financial position
- Capped call transactions implemented to reduce potential stock dilution
- Potential dilution of existing shareholders' equity if Notes are converted to common stock
- Increased debt liability on the company's balance sheet
- Future cash flow obligations due to interest payments on the Notes
Insights
Varonis Systems' upsized
This financial maneuver by Varonis Systems reflects the competitive landscape in the cybersecurity sector. The substantial capital raise suggests Varonis is positioning itself for significant investments or acquisitions in emerging technologies, possibly in areas like AI-driven data security or cloud-native solutions. The company's ability to secure favorable terms indicates market confidence in its strategic direction and growth potential. However, the cybersecurity market is rapidly evolving and Varonis will need to allocate this capital wisely to stay ahead of competitors and meet changing customer needs. Investors should watch for upcoming announcements on how Varonis plans to utilize these funds to enhance its product offerings and market position.
The timing of Varonis' convertible note offering is noteworthy. With interest rates at historic highs, securing a
NEW YORK, Sept. 05, 2024 (GLOBE NEWSWIRE) -- Varonis Systems, Inc. (Nasdaq: VRNS) (“Company” or “Varonis”), announced today that it priced a private offering of
The Notes will be unsecured senior obligations of the Company. The Notes will mature on September 15, 2029, unless earlier converted, redeemed or repurchased. Interest will accrue on the Notes at a rate of
The Notes will be convertible at the option of the holders, prior to the close of business on the business day immediately preceding March 15, 2029, only under certain circumstances and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. The initial conversion rate for the Notes will be 14.7419 shares of the Company’s common stock for each
The Notes will not be redeemable at the Company’s option prior to September 20, 2027. The Company may redeem for cash all or any portion (subject to a partial redemption limitation) of the Notes, at its option, on a redemption date occurring on or after September 20, 2027, and on or prior to the 41st scheduled trading day immediately preceding the maturity date, if the last reported sale price of the Company’s common stock has been at least
The Company estimates that the net proceeds from the sale of the Notes, after deducting initial purchaser discounts and offering expenses, will be approximately
In connection with the pricing of the Notes, the Company has 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 reduce the potential dilution to the Company’s common stock upon any conversion of the Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of converted Notes, as the case may be, with such reduction and/or offset subject to a cap initially equal to
The Company expects that, in connection with establishing their initial hedges of the capped call transactions, the Option Counterparties and/or their respective affiliates will enter into various derivative transactions with respect to the Company’s common stock concurrently with or shortly after the pricing of the Notes and/or purchase shares of the Company’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 the Company’s common stock or the Notes at that time.
In addition, the Option Counterparties and/or their respective affiliates may modify their hedge positions by entering into or unwinding various derivatives with respect to the Company’s common stock and/or purchasing or selling the Company’s common stock or other securities of the Company in secondary market transactions following the pricing of the Notes and prior to the maturity of the Notes (and are likely to do so following any conversion of the Notes, any repurchase of the Notes by the Company on any fundamental change repurchase date, any redemption date, or any other date on which the Notes are retired by the Company, in each case, if the Company exercises its option to terminate the relevant portion of the capped call transactions). This activity could also cause or avoid an increase or a decrease in the market price of the Company’s common stock or the Notes, which could affect holders’ ability to convert the Notes and, to the extent the activity occurs during any observation period related to a conversion of the Notes, it could affect the number of shares of common stock, if any, and value of the consideration that noteholders will receive upon conversion of the Notes.
The Notes were only offered to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act. The Notes and the shares of the Company’s common stock into which the Notes are convertible have not been, and will not be, registered under the Securities Act or the securities laws of any other jurisdiction, and unless so registered, may not be offered or sold in the United States except pursuant to an applicable exemption from such registration requirements.
This press release is neither an offer to sell nor a solicitation of an offer to buy the Notes or the shares of the Company’s common stock into which the Notes are convertible, nor will there be any offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.
Forward-Looking Statements
This press release contains “forward-looking” statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this press release, including statements regarding whether the Company will issue the notes, the anticipated use of the net proceeds from the offering, the Company’s expectations in respect of the initial purchasers exercising their option to purchase additional notes, and expectations regarding the effect of the capped call transactions and regarding actions of the option counterparties and/or their respective affiliates, are forward-looking statements. These statements are not guarantees of future performance but are based on management’s expectations as of the date of this press release and assumptions that are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements. Important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements include the following: risks related to whether the Company will consummate the offering of the Notes on the expected terms, or at all; the anticipated use of the net proceeds of the offering; the fact that the Company’s management will have broad discretion in the use of the proceeds from any sale of the Notes; the Company’s discretion on whether to exercise the option to terminate a portion of the capped call transactions upon certain events in respect of the Notes; the impact of potential information technology, cybersecurity or data security breaches; risks associated with anticipated growth in Varonis’ addressable market; general economic and industry conditions, such as foreign currency exchange rate fluctuations and expenditure trends for data and cybersecurity solutions; Varonis’ ability to predict the timing and rate of subscription renewals and their impact on the Company’s future revenues and operating results; risks associated with international operations; the impact of global conflicts on the budgets of Varonis’ clients and on economic conditions generally; competitive factors, including increased sales cycle time, changes in the competitive environment, pricing changes and increased competition; the risk that Varonis may not be able to attract or retain employees, including sales personnel and engineers; Varonis’ ability to build and expand its direct sales efforts and reseller distribution channels; risks associated with the closing of large transactions, including Varonis’ ability to close large transactions consistently on a quarterly basis; new product introductions and Varonis’ ability to develop and deliver innovative products; Varonis’ ability to provide high-quality service and support offerings; the expansion of cloud-delivered services; and risks associated with Varonis’ previously issued convertible notes and capped-call transaction. These and other important risk factors are described more fully in Varonis’ reports and other documents filed with the Securities and Exchange Commission and could cause actual results to vary from expectations. All information provided in this press release is as of the date hereof, and Varonis undertakes no duty to update or revise this information, whether as a result of new information, new developments or otherwise, except as required by law.
About Varonis
Varonis is a leader in data security, fighting a different battle than conventional cybersecurity companies. Its cloud-native Data Security Platform continuously discovers and classifies critical data, removes exposures, and detects advanced threats with AI-powered automation.
Thousands of organizations worldwide trust Varonis to defend their data wherever it lives - across SaaS, IaaS, and hybrid cloud environments. Customers use Varonis to automate a wide range of security outcomes, including data security posture management (DSPM), data classification, data access governance (DAG), data detection and response (DDR), data loss prevention (DLP), and insider risk management.
Investor Relations Contact:
Tim Perz
Varonis Systems, Inc.
646-640-2112
investors@varonis.com
News Media Contact:
Rachel Hunt
Varonis Systems, Inc.
877-292-8767 (ext. 1598)
pr@varonis.com
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