RingCentral to buy back $461 million of 0% convertibles due 2025

By Mary-Katherine Stinson

Lexington, Ky., May 19 – RingCentral, Inc. entered into individual, privately negotiated repurchase transactions with certain holders of its 0% convertible senior notes due 2025 to repurchase approximately $461 million of the notes, according to a press release.

This represents 46% of the 2025 notes, CFO Sonalee Parekh stated in the press release.

The notes will be repurchased at a discount for about $425 million in cash, funded by a drawdown from the company’s term loan facility, plus cash on hand.

Settlement is expected on or about May 25.

Following closing, approximately $539 million aggregate principal amount of the 2025 notes will remain outstanding.

RingCentral is a Belmont, Calif.-based cloud-based communications and collaboration software company.

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