Bandwidth Repurchases $100M in Convertible Notes

By Chris Stiles • Monday, March 02 11:09 • Permanent Link

Bandwidth Inc. (NASDAQ: BAND) has announced a partial repurchase of its 0.50% convertible senior notes due 2028. The company has entered into separate, privately negotiated repurchase agreements to repurchase $100 million aggregate principal amount of the 2028 notes at a discount to par value, reducing the outstanding principal balance from $250 million to $150 million.

In addition to this, the company's 0.25% convertible senior notes due 2026 reached maturity on March 1, 2026, and are being fully retired with cash on hand. This results in Bandwidth no longer having convertible notes outstanding with maturities prior to April 1, 2028, simplifying its capital structure and reducing its debt profile.

Bandwidth's CFO, Daryl Raiford, highlighted the company's strong financial position, citing record levels of profitability and free cash flow in the fourth quarter of 2025. He also shared the company's expectations for 16% revenue growth and nearly 30% adjusted EBITDA growth in 2026.

The company's balanced capital allocation strategy includes planned record levels of investment in AI innovation, an $80 million share repurchase program, and an accelerated de-leveraging campaign by repurchasing convertible debt at an attractive discount. With the announced partial repurchase of the 2028 convertible notes and the full retirement of the 2026 notes, Bandwidth has taken significant steps to strengthen its balance sheet while continuing to invest for long-term growth.

Following the closings of the repurchases, approximately $150 million principal amount of the 2028 notes will remain outstanding, down from an initial issued principal balance of $250 million.

Bandwidth Inc. is a global cloud communications software company that provides voice calling, text messaging, and emergency services solutions. The company's communications cloud covers 65+ countries and over 90% of global GDP and is trusted by leaders in unified communications and cloud contact centers, as well as global 2000 enterprises and SaaS builders.

As of now, the company has not made any offers or solicitations for the securities described in the press release. Following these announcements, the company's shares moved -0.89%, and are now trading at a price of $13.41. If you want to know more, read the company's complete 8-K report here.

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