Datadog, Inc. announced on December 10, 2024, the pricing of $870 million aggregate principal amount of 0% Convertible Senior Notes due 2029 in a private placement. This offering size was increased from the previously announced $775 million. The initial purchasers also have an option to buy up to an additional $130 million aggregate principal amount of notes.
The notes will not bear regular interest and will mature on December 1, 2029. Datadog estimates net proceeds of approximately $851.6 million, or $979.0 million if the option for additional notes is fully exercised. A portion of these proceeds, approximately $87.8 million, will be used for capped call transactions, and $112.0 million will repurchase outstanding 0.125% Convertible Senior Notes due 2025.
The initial conversion price for the notes is approximately $217.60 per share, representing a premium of about 35% over the Class A common stock's closing price on December 9, 2024. The remaining net proceeds will be used for general corporate purposes, including potential acquisitions or strategic investments.
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