RingCentral to buy back $253 million of 2025 convertibles

By Mary-Katherine Stinson

Lexington, Ky., Dec. 13 – RingCentral, Inc. announced it entered into individual, privately negotiated repurchase transactions with some holders of its 0% convertible senior notes due 2025, according to a press release.

The company will purchase about $253 million of the 2025 notes for about $240 million in cash.

The repurchases will be funded using proceeds of a previously announced issuance of 8.5% senior notes due 2030.

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 Dec. 15.

After closing, about $161 million of the 2025 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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