Benzinga | Feb 24, 2021 07:33AM EST

Dropbox Raises $1.31B In Upsized Convertible Debt Offering

* Dropbox, Inc. (NASDAQ: DBX) priced $653 million convertible senior notes due 2026 and $653 million convertible senior notes due 2028 from an upsized debt offering in a private placement to qualified institutional buyers to raise $1.286 billion.

* The offering was upsized from $1.135 billion announced previously.

* Dropbox intends to utilize $58.6 million from the offering proceeds towards convertible note hedge transactions, $200 million to repurchase shares at Tuesday's closing price of $23.18 per share.

* The 2026 notes may be converted at an initial conversion rate of 26.1458 shares per $1,000 principal amount of such notes (or $38.25 per share), and the 2028 notes may be converted at an initial conversion rate of 28.2889 shares per $1,000 principal amount of such notes (or $35.35 per share).

* DBX shares have gained 23% in the last quarter.

* Price action: DBX shares are up 0.95% at $23.40 in the premarket session on the last check Wednesday.