SentinelOne said it plans to raise $1.25 billion through a private placement of 0.00% convertible senior notes due 2031, with initial purchasers also getting an option to buy up to another $187.5 million of notes.
The company said it expects to use the proceeds in three main ways: to fund the capped call transactions tied to the notes, to repurchase up to $150 million of its Class A common stock at the same time the notes are priced, and to use the rest for general corporate purposes, working capital, capital expenditures, additional share repurchases, and possible acquisitions or strategic investments.
The planned share repurchase is capped at $150 million and would be done in privately negotiated transactions with note buyers. SentinelOne said the repurchase price per share would equal the NYSE closing price on the pricing date.
SentinelOne also said it expects to enter into capped call transactions covering the shares initially underlying the notes. It said the cap price on those transactions is expected to be at least 100% above the stock’s last reported sale price on the pricing date.
Separately, the company said it intends to pursue a $400 million secured revolving credit facility, though that agreement has not yet been executed. The market has reacted to these announcements by moving the company's shares 2.41% to a price of $23.37. If you want to know more, read the company's complete 8-K report here.
