By Chris Wack

BlackLine shares were down 8% to $53.27 after the company said it intends to offer $500 million of convertible senior notes due 2029 in a private placement.

The packaged software company also said it intends to grant the initial purchaser of the notes a 13-day option to buy up to an additional $75 million in notes.

The notes will be senior unsecured obligations of BlackLine and will accrue interest payable semiannually in arrears. The notes will mature June 1, 2029, unless earlier converted, repurchased or redeemed.

The notes will be convertible into cash, shares of BlackLine's stock or a combination of cash and shares, at BlackLine's election.

BlackLine intends to use a portion of the net proceeds from this offering for the repurchase of a portion of its outstanding 0% Convertible Senior Notes due 2026. BlackLine intends to use the remainder of the proceeds from this offering for working capital and other general corporate purposes.

Write to Chris Wack at

(END) Dow Jones Newswires

05-21-24 1310ET