Rapid7 (NASDAQ:RPD) priced $260M aggregate principal amount of 1.25% convertible senior notes due 2029 in a private placement.
The aggregate principal amount of the offering was increased from the previously announced offering size of $250M.
Initial purchasers have the option to purchase an additional $40M aggregate principal amount of notes.
The sale of the notes is expected to close on September 8, 2023.
The notes will mature on March 15, 2029, unless earlier converted, redeemed, or repurchased. Net proceeds from the offering will be ~$253M.
The company expects to use ~$201.5M of the aggregate net proceeds to repurchase $184M aggregate principal amount of its outstanding 2.25% convertible senior notes due 2025. The company also expects to use ~$31.7M of the net proceeds to pay the cost of the capped call transactions described below and $4.9M from the sale of such additional notes to enter into additional capped call transactions.