SentinelOne said it plans to raise $1.25 billion through a private placement of 0.00% convertible senior notes due 2031.
The company also gave the initial purchasers an option to buy an additional $187.5 million of notes, which would lift the total offering size to $1.4375 billion if fully exercised.
From the proceeds, SentinelOne expects to allocate: a portion to pay for capped call transactions, up to $150 million to repurchase shares of its Class A common stock at the time of pricing, * and the remainder to general corporate purposes, including working capital, capital expenditures, additional share repurchases, and possible acquisitions or investments.
The share repurchase plan is capped at $150 million, and SentinelOne said the repurchase price per share is expected to match the NYSE closing price on the pricing date.
The company also said it is pursuing a $400 million secured revolving credit facility, though that agreement has not yet been executed.
SentinelOne said the capped call transactions are intended to reduce dilution on conversion and are expected to be structured with a cap price initially set at a premium of at least 100% over the stock’s last reported NYSE sale price on the pricing date. Following these announcements, the company's shares moved 2.41%, and are now trading at a price of $23.37. For more information, read the company's full 8-K submission here.
