Dynatrace (DT) unit Dynatrace LLC priced a private offering of $1.25 billion of 0% exchangeable senior unsecured notes due Sept. 1, 2031, the company said Tuesday.
Initial purchasers have an overallotment option to buy up to an additional $187.5 million of notes.
The company expects the sale of the notes to the initial purchasers to settle Thursday and is estimated to result in about $1.23 billion in net proceeds.
Dynatrace plans to use roughly $145.9 million of the net proceeds to pay the cost of certain exchangeable note hedge transactions, among other things, it said.
The company's shares were up 2% in premarket activity.