Bandwidth Shares Slip on Planned $275 Million Convertible Notes Offering
By Adriano Marchese
Shares of Bandwidth fell sharply Monday after the company said it intends to raise $275 million in a private offering of convertible senior notes.
Shares fell nearly 14% to $56.38.
The communications-software company said it is offering the convertible senior notes to qualified institutional buyers, along with a 13-day option to purchase about an additional $41.3 million worth of the notes.
The notes will be unsecured obligations with interest paid semiannually and convertible into cash, shares or a combination of Bandwidth's choice, the company said. The interest rate attached to the notes will be set once the pricing is determined, it said.
Bandwidth plans to use the money to pay the cost of capped call transactions with certain initial purchasers of the notes, it said, as well as to buy back some shares. The company said it also expects to buy back a portion of its outstanding 2028 convertible notes and use remaining funds to repay borrowings under its credit facility and other general corporate purposes.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
June 15, 2026 11:26 ET (15:26 GMT)
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