WASHINGTON (dpa-AFX) - TIBCO Software Inc. (TIBX) said Monday that it plans to offer about $500 million aggregate principal amount of convertible senior notes due 2032 through an offering to qualified institutional buyers.
In connection with the offering, TIBCO plans to grant the initial purchasers a 30-day over-allotment option to purchase up to an additional $75 million aggregate principal amount of notes.
The notes will be convertible, subject to the satisfaction of certain conditions, into cash and shares of TIBCO common stock, if any.
The company said it plans to use a portion of the net proceeds to repurchase shares of its common stock up to an aggregate purchase price of $150 million in negotiated transactions with institutional investors in the offering through one or more of the initial purchasers or its affiliate, as TIBCO's agent, subject to availability.
TIBCO also expects to use about $150 million of the net proceeds to repay indebtedness outstanding under its revolving credit facility. The company plans to use the balance of the proceeds for general corporate purposes, including working capital and capital expenditures, and potential acquisitions and other strategic transactions.
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