TEL AVIV (dpa-AFX) - Check Point Software Technologies Ltd. (CHKP), a provider of cybersecurity solutions, on Thursday priced $1.75 billion of 0.00% convertible senior notes due 2030 in a private offering.
The offering was increased from the originally planned $1.5 billion. The company also granted initial purchasers an option to buy up to an additional $250 million of the notes. Settlement is expected on December 8.
The notes will be convertible at an initial rate of 4.1042 shares per $1,000 principal amount, representing a 27.5% conversion premium to Check Point's closing share price on December 3.
Check Point expects net proceeds of about $1.72 billion, or $1.97 billion if the additional notes are fully purchased. The company plans to use $168 million to cover the cost of capped call transactions entered into with certain initial purchasers, and around $225 million to repurchase 1.18 million shares under its existing buyback program. The remaining proceeds will be used for general corporate purposes. A portion of the proceeds from the sale of any additional notes is expected to fund further capped call transactions.
Shares of Check Point closed Wednesday at $191.10, up 2.06%.
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