Fastly (FSLY) said late Monday that it has signed separate, privately negotiated agreements to issue $150 million in 7.75% convertible senior notes due 2028.
The initial conversion rate is 50.6586 shares per $1,000 principal, equivalent to a conversion price of $19.74 per share, the cloud-services company said.
The gross proceeds of the issuance will be used to repurchase $157.9 million of the company's existing 0.00% convertible senior notes due 2026, the company added.
Additionally, Fastly said it has entered into separate, privately negotiated repurchase agreements with a number of holders of its existing convertible notes to repurchase $157.9 million of those notes for $150 million.
The transactions are expected to be settled on Thursday.
Shares of the company were up more than 1% in recent Tuesday premarket activity.
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