(RTTNews) - DigitalOcean Holdings, Inc. (DOCN), on Wednesday, announced plans to repurchase up to $500 million aggregate principal amount of its 0.00% convertible senior notes due 2030 through privately negotiated transactions.
The transactions are expected to close on July 23.
The company said the transaction is expected to reduce net leverage with minimal change in cash or shares outstanding.
The company also added that the transaction will create additional capacity to support the expansion of its AI-Native Cloud.
The company said the repurchase will be funded by a concurrent registered direct offering of common stock.
The company expects to use the net proceeds from the stock offering to repurchase the notes for cash.
In the pre-market trading, DigitalOcean Holdings is 1.79% lesser at $124 on the New York Stock Exchange.
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