Datadog, Inc. announced on December 9, 2024, its intention to offer $775 million aggregate principal amount of Convertible Senior Notes due 2029 in a private placement. The company also plans to grant initial purchasers an option to buy up to an additional $116.25 million aggregate principal amount of notes.
The notes will be general unsecured obligations of Datadog, will not bear regular interest, and will mature on December 1, 2029, unless converted, redeemed, or repurchased earlier. Upon conversion, Datadog will have the option to pay in cash, Class A common stock, or a combination of both.
Datadog expects to use a portion of the net proceeds to cover the cost of capped call transactions and to repurchase a portion of its outstanding 0.125% Convertible Senior Notes due 2025. The remaining proceeds are earmarked for general corporate purposes, which may include acquisitions or strategic investments in complementary businesses or technologies.
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