(Updates with the latest stock movement in the first paragraph and headline.)
Backblaze (BLZE) shares were down roughly 13% in Wednesday trading after the company said late Tuesday it plans to issue $150 million in convertible senior notes due 2031 through a private placement to institutional investors.
The company intends to offer a 13-day option for purchasers to acquire an additional $22.5 million to cover potential over-allotments, it added.
The cloud storage provider will allocate the net proceeds to finance capped call transactions, fund capital expenditures, and support general corporate operations while retaining the flexibility to settle future debt conversions in cash or equity, the company said.
Price: $16.79, Change: $-2.41, Percent Change: -12.55%