Co-Manager
8x8, Inc.
Equity Capital Markets
Convertible Senior Notes Offering
Transaction Details
- On February 14, 2019, 8x8, Inc. (NYSE: EGHT) announced the pricing of $250 million aggregate principal amount of 0.50% convertible senior notes due 2024 (the “Notes”) in a private offering
- The Notes were offered in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended
- The Notes will bear interest at a rate of 0.50%, payable semiannually in arrears on February 1 and August 1 of each year, beginning on August 1, 2019
- The initial conversion rate for the Notes is 38.9484 shares of EGHT common stock per $1,000 principal amount of Notes (equivalent to an initial conversion price of approximately $25.68 per share of common stock)
- The initial conversion price of the Notes represents a premium of approximately 30.0% to the $19.75 per share closing price of EGHT common stock on February 13, 2019
- 8x8 intends to use net proceeds to pay the cost of capped call transactions related to the Notes offering, and for general corporate purposes, including financing potential acquisitions and other strategic transactions
- Stephens Inc. served as Co-Manager for the offering
About the company
8x8, Inc. (NYSE: EGHT) is a provider of enterprise cloud communications solutions that help businesses get their employees, customers and applications more connected and productive worldwide. From one technology platform, we offer cloud phone, collaboration, conferencing, contact center, data analytics and other services to business customers on a Software-as-a-Service (SaaS) model. Our solutions offer a secure, reliable and simplified approach for businesses to transition their legacy, on-premises communications systems to the cloud. As of December 31, 2018, our customers are spread across more than 150 countries and range from small businesses to large enterprises with more than 10,000 employees.
Sources: Transaction press release and Offering Memorandum.
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This material has been prepared solely for informative purposes as of its stated date and is not a solicitation, or an offer, to buy or sell any security. It does not purport to be a complete description of the securities, markets or developments referred to in the material. Information included in the material was obtained from external sources which we consider reliable, but we have not independently verified such information and do not guarantee that it is accurate or complete. Such information is believed to be accurate on the date of issuance of the material. No subsequent publication or distribution of this material shall mean or imply that any such information or opinion remains current at any time after the stated date of the material. We do not undertake to advise you of any changes in any such information or opinion. Additional information is available upon request.
The offering of the convertible notes is being made only by means of an offering memorandum in a private offering to qualified institutional buyers (as defined in Rule 144A under the Securities Act of 1933). The notes and the shares of the Company’s common stock issuable upon conversion of the notes, if any, have not been registered under the Securities Act of 1933 or any state securities laws and the Company does not intend to file a shelf registration statement for resale of the notes or such common stock, if any.