Cloudflare reportedly raises $2.175 billion via convertible notes
Tech firm to use proceeds for general corporate purposes, including potential acquisitions and working capital.
Cloudflare Inc. said on Tuesday it priced a $2.175 billion convertible senior notes offering reportedly due in 2031.
The notes, which will reportedly bear interest at a rate of 0.00% per annum, are convertible into cash, shares or a combination of both at the company’s option. Proceeds from the offering will reportedly be used for general corporate purposes, including potential acquisitions and working capital.
The offering is expected to close on or about May 15, 2025, subject to customary closing conditions. J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC are acting as joint book-running managers for the transaction.
Convertible notes provide issuers with lower interest costs compared to traditional debt, as investors accept the conversion feature in exchange for potential equity upside. The structure allows Cloudflare to defer cash interest payments while raising capital.
Cloudflare, which provides internet infrastructure and security services, has reportedly seen strong demand for its offerings amid growing enterprise adoption of cloud-based solutions.
Priya covers listed equities and corporate earnings, reading quarterly results and guidance for what they signal about sector health and forward valuations.
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