The Capital Markets team advised the initial purchasers on RingCentral’s successful Rule 144A offering of 0% Convertible Senior Notes due 2026. The deal initially launched at $600 million, but was upsized to $650 million. The initial conversion price of the notes featured a premium of 52.5% up from the reference price of approximately $278 per share. In connection with the offering, RingCentral and certain investment bank dealers entered into capped call transactions, which mitigates equity dilution and/or offsets payments due upon conversion of the notes and effectively raises the conversion price of the notes to approximately $556 per share, a 100% premium over the reference price. In addition to the new offering, RingCentral also repurchased approximately $132.6 million of its 0% Convertible Senior Notes due 2023.
RingCentral. (NYSE: RNG) is a provider of software-as-a-service solutions that enables businesses to communicate, collaborate and connect.
Goodwin’s team consisted of Jim Barri, Kim de Glossop and Kyrsten Keith and included John Servidio, Benjamin Drai and Daniel Karelitz.
For more information, please see RingCentral’s pricing press release for the offering.