A10 Networks, Inc. (ATEN) Thursday said it priced private offering of $200 million, 2.75% convertible senior notes due 2030. The company's shares were more than 10 percent down in pre-market.
A10 Networks also granted the initial purchasers an option to purchase up to an additional $25 million of notes.
From December 1, 2029, the noteholders can convert their notes at 42.6257 shares per $1,000 of notes. The initial conversion price of $23.46 per share represents a premium of more than 20 percent over the closing price of A10 shares of $19.55 per share on March 12.
The company estimates that the net proceeds from the offering will be about $193.8 million or approximately $218.1 million if the initial purchasers fully exercise their option to purchase additional notes. It plans to use nearly $44.2 million of the net proceeds to repurchase its shares concurrently with the offering in private transactions at a purchase price of $19.55 per share. Remaining part of the proceeds is expected to be used for working capital and other general corporate purposes.
A10 Networks stock had closed at $19.55, up 0.51 percent on Wednesday. It has traded in the range of $12.27 - $21.90 in the last 1 year.
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