Summary
ServiceNow, Inc. (NOW) announced on May 23, 2017, the pricing of $750 million in aggregate principal amount of 0% Convertible Senior Notes due 2022. The company also provided an option for the initial purchasers to buy an additional $112.5 million in notes to cover over-allotments, potentially bringing the total issuance to $862.5 million. These notes are being offered to qualified institutional buyers under Rule 144A of the Securities Act of 1933. This offering represents a significant capital raise for ServiceNow, likely intended to fund future growth initiatives, strategic investments, or general corporate purposes. Investors should note the zero-coupon nature of the notes, which implies that their return will be solely derived from the conversion feature or the principal repayment at maturity, rather than periodic interest payments.
Key Highlights
- 1ServiceNow priced $750 million in 0% Convertible Senior Notes due 2022.
- 2An over-allotment option for an additional $112.5 million in notes was granted.
- 3The total potential issuance could reach $862.5 million.
- 4The notes are being sold to qualified institutional buyers under Rule 144A.
- 5The notes carry a 0% coupon rate, meaning no regular interest payments will be made.
- 6The offering was announced on May 23, 2017.