Planet Labs PBC (NYSE:PL) has announced its plan to offer $300,000,000 aggregate principal amount of Convertible Senior Notes due 2030 in a private offering to qualified institutional buyers. The notes will be general, unsecured obligations of Planet and will bear interest payable semi-annually in arrears, with maturity on October 15, 2030.
The company intends to use a portion of the net proceeds from the offering to pay for capped call transactions and the remainder for general corporate purposes. In connection with the pricing of the notes, Planet expects to enter into privately negotiated capped call transactions to cover the number of shares of Class A common stock underlying the notes sold in the offering.
Regarding the financial performance, it's important to note that the interest rate, initial conversion rate, and other terms of the notes will be determined at the time of pricing of the offering. This indicates that these specific metrics are yet to be determined and will depend on the market conditions and other factors at the time of pricing.
Additionally, it's worth mentioning that the capped call transactions are expected to reduce the potential dilution to Planet’s Class A common stock upon any conversion of notes and/or offset any cash payments Planet is required to make in excess of the principal amount of converted notes, subject to a cap. The cap price of the capped call transactions is expected to represent a premium of at least 100% over the last reported sale price of Planet’s Class A common stock on the pricing date of the offering.
Lastly, it's notable that the notes will only be offered to qualified institutional buyers by means of a private offering memorandum, and neither the notes nor the shares of Planet’s Class A common stock potentially issuable upon conversion of the notes have been registered under the Securities Act or the securities laws of any other jurisdiction.
For further details, interested parties can contact Planet Labs PBC investor relations and press teams via the provided contact information. As a result of these announcements, the company's shares have moved 1.14% on the market, and are now trading at a price of $9.78. If you want to know more, read the company's complete 8-K report here.
