Dropbox Prices $1.1 Billion Note Sale, Plans at Least $750 Million Loan Paydown

Dropbox priced $1.1 billion of convertible notes due in 2031 and plans to combine proceeds with cash on hand to repay at least $750 million in term-loan principal. The offering was increased from the $1 billion announced Nov. 9. The notes mature Dec. 1, 2031, carry a 1.25% annual interest rate payable twice a year and are expected to settle Nov. 12. Initial purchasers have 13 days to buy up to $150 million in additional notes. Dropbox expects net proceeds of about $1.082 billion, rising to about $1.23 billion if the option is exercised in full. Dropbox plans to spend about $103.1 million of the proceeds on convertible-note hedge costs, partly offset by warrant proceeds, and about $175 million to repurchase Class A shares.

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