RingCentral, Inc. (NYSE:RNG), a leading provider of AI-powered global enterprise cloud communications, video meetings, collaboration, and contact center solutions, today announced that it has entered into individual, privately negotiated repurchase transactions with certain holders of the Company’s 0% Convertible Senior Notes due 2025 (the “2025 Notes”).
Pursuant to the Note Repurchases, the Company will pay approximately $425 million in cash to repurchase approximately $461 million aggregate principal amount of the 2025 Notes using amounts drawn under the Company’s term loan facility, together with cash on hand. The Company anticipates the closing of the Note Repurchases to occur on or about May 25, 2023. Following the closing of the Note Repurchases, approximately $539 million aggregate principal amount of the 2025 Notes will remain outstanding.
“We previously disclosed our intent to use the proceeds from our term loan facility to retire convertible debt if market conditions presented an attractive opportunity to do so,” said Sonalee Parekh, CFO of RingCentral. “Repurchasing approximately 46% of our 2025 Convertible Notes at a discount strengthens our financial profile and is aligned with our strategy to drive profitable growth and disciplined capital management.”
This press release is neither an offer to sell nor a solicitation of an offer to buy any securities described above, nor will there be any offer, solicitation, or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
