RingCentral buys back $171 million of 2025, 2026 convertibles

By Marisa Wong

Los Angeles, Aug. 24 – RingCentral, Inc. announced it entered into individual, privately negotiated repurchase transactions with some holders of its 0% convertible senior notes due 2025 and 0% convertible senior notes due 2026, according to a press release.

The company will purchase about $130 million of the 2025 notes and $41 million of the 2026 notes for about $122 million and $35 million in cash, respectively.

The repurchases will be funded using proceeds of an issuance of 8.5% senior notes due 2030 that closed on Aug. 16.

The company said the note buybacks are aligned with its previous announcement that it intended to use the net proceeds from the issuance of the 2030 notes to repurchase or repay a portion of its outstanding convertible notes.

Closing of the repurchases is expected to occur on or about Aug. 28.

After closing, about $409 million of the 2025 notes and $609 million of the 2026 notes will remain outstanding.

RingCentral is a Belmont, Calif.-based provider of AI-powered global enterprise cloud communications, video meetings, collaboration and contact center software.

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