Announces $375M Convertible Notes Offering Holdings, Inc. (NASDAQ: ALRM) has announced its intention to offer $375.0 million aggregate principal amount of convertible senior notes due 2029 in a private placement. The company also plans to grant the initial purchasers of the notes an option to purchase up to an additional $56.25 million aggregate principal amount of notes.

The notes will be general unsecured obligations of and will accrue interest payable semiannually in arrears. The interest rate, initial conversion rate, and other terms of the notes will be determined at the time of pricing of the offering. expects to use the net proceeds from the offering for various purposes, including paying the cost of capped call transactions, repurchasing up to $75.0 million of its common stock concurrently with the pricing of the offering, and for general corporate purposes such as acquisitions, strategic investments, stock repurchases, and working capital.

In connection with the pricing of the notes, intends to enter into privately negotiated capped call transactions to hedge its position. The company anticipates using a portion of the net proceeds from the sale of additional notes to enter into additional capped call transactions and the remainder for other general corporate purposes. also plans to repurchase shares of its common stock from purchasers of notes in privately negotiated transactions with or through one of the initial purchasers or its affiliate concurrently with the pricing of the offering. The purchase price per share of its common stock repurchased is expected to equal the closing price per share of its common stock on the date of the offering.

The notes and any shares of’s common stock issuable upon conversion of the notes have not been and will not be registered under the securities act, any state securities laws, or the securities laws of any other jurisdiction. is the leading platform for the intelligently connected property, serving millions of consumers and businesses. The company's technology integrates with a growing variety of internet of things (IoT) devices through its apps and interfaces, offering security, video, access control, intelligent automation, energy management, and wellness solutions through its network of professional service providers in North America and around the globe. Following these announcements, the company's shares moved -1.0%, and are now trading at a price of $65.41. If you want to know more, read the company's complete 8-K report here.

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