Security News > 2021 > January > DocuSign closes offering of 0% convertible senior notes due 2024 for gross proceeds of $690M

DocuSign announced that it has closed its offering of 0% convertible senior notes due 2024 for gross proceeds of $690.0 million, including the full exercise of the $90.0 million option to purchase additional notes granted by DocuSign to the initial purchasers.

The notes are general unsecured, senior obligations of DocuSign that do not bear regular interest, and the principal amount of the notes will not accrete.

Upon conversion, the notes may be settled in shares of DocuSign common stock, cash or a combination of cash and shares of DocuSign common stock, at the election of DocuSign.

DocuSign used approximately $31.4 million of the net proceeds from the offering of the notes to pay the cost of the capped call transactions described below.

DocuSign used approximately $460.0 million of the net proceeds from the offering, together with approximately 4.7 million shares of DocuSign common stock, to repurchase $460.0 million aggregate principal amount of its 0.50% Convertible Senior Notes due 2023.

In connection with the pricing of the notes and the full exercise of the option by the initial purchasers to purchase additional notes, DocuSign has entered into privately negotiated capped call transactions with one or more of the initial purchasers of the notes or their respective affiliates and other financial institutions.

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