Benzinga | Dec 8, 2021 07:45AM EST

Confluent Seeks To Raise $1B Via Private Institutional Debt Offering

* Confluent Inc (NASDAQ:CFLT) proposed to offer $1.0 billion convertible senior notes due 2027 in a private institutional placement.

* The initial purchasers of the notes have 13 days to issue up to an additional $100.0 million notes.

* The notes will be general unsecured obligations of Confluent and will accrue interest payable semiannually in arrears.

* The notes will be convertible into cash, shares, or a combination of cash and shares of Confluent.

* Confluent will use a portion of the offering proceeds over capped call transactions. The capped call transactions will help reduce the potential dilution to Confluent shares upon any conversion of notes.

* Confluent will use the remaining proceeds for working capital and other general corporate purposes.

* Confluent may also use a portion for acquisitions and strategic investments.

* Confluent is a new category of data infrastructure designed to connect all the company's applications, systems, and data layers around a real-time central nervous system.

* The company generates revenue from the sale of subscriptions and services.

* Price Action: CFLT shares traded lower by 5.60% at $69 in the premarket session on the last check Wednesday.