Dropbox To Offer $1 Bln Convertible Sr Notes

(RTTNews) - Dropbox, Inc. (DBX), a U.S.-based cloud storage and collaboration platform, said Monday that it intends to offer $1 billion of convertible senior notes due 2031 in a private placement.

Dropbox expects to grant the initial purchasers a 13-day option to purchase up to an additional $150 million of the notes.

The company intends to use a portion of the net proceeds to pay for convertible note hedge transactions and repurchase approximately $175 million of its Class A common stock from institutional investors, concurrently with the pricing of the notes.

Dropbox expects to use the remaining proceeds, together with cash on hand, to repay at least $750 million of debt.

The company's shares fell about 5% in pre-market trading after closing at $34.66 on Friday.