DigitalOcean Holdings, Inc. (DOCN), a technology company and cloud service provider, on Tuesday it has priced $550 million aggregate principal amount of 0.00% convertible senior notes due 2030 in a private offering to qualified institutional buyers.
The offering size was increased from the previously announced $500 million. The sale to initial purchasers is expected to close on August 14.
The company also granted the initial purchasers a 13-day option, starting from the issuance date of the notes, to buy up to an additional $75 million in aggregate principal amount of the notes.
The company expects net proceeds of about $532.4 million or $605.6 million if the option is exercised in full. It plans to use $73.81 million for capped call transactions and the remainder, along with cash on hand and term loans, to repurchase about $1.19 billion principal amount of its 0.00% convertible senior notes due 2026 for roughly $1.13 billion in cash.
Additional proceeds, if the option is exercised, will fund more capped call transactions and for general corporate purposes, which may include further repurchases of the 2026 notes.
Concurrent with the pricing, DigitalOcean agreed to repurchase about $1.19 billion principal of 2026 notes for about $1.13 billion cash and announced plans to adopt a $100 million stock repurchase program expiring July 31, 2027.
On Monday, DigitalOcean closed trading 10.56% lesser at $29.56 on the New York Stock Exchange. In the overnight trading, DigitalOcean closed trading 0.78% lesser at $29.33.
For comments and feedback contact: editorial@rttnews.com
Business News
June 19, 2026 16:46 ET Major central banks continued to dominate the economic news flow this week too, led by the Federal Reserve, as they announced their latest policy decisions. The Federal Reserve policy session was in focus as it was the first to be led by the new chief Kevin Warsh. In Europe, central banks of the U.K. and Switzerland announced their rate decisions. In Asia, the Bank of Japan drew attention for its policy moves, while data out of China threw some light on the state of the economy.