By Dave Sebastian
Splunk Inc. said that private-equity firm Silver Lake will make a $1 billion investment in convertible senior notes to fund growth initiatives and help it manage its capital structure, including a share-buyback program of up to $1 billion.
With the investment, Splunk will appoint Kenneth Hao, Silver Lake's chairman and managing partner, to the board, the data-platform company said Tuesday. The board will have 11 members, 10 of whom are independent, with Mr. Hao's entry, it said.
The notes will have an initial conversion price of $160 a share of Splunk stock, Splunk said. The notes will mature in July 2026, unless earlier repurchased, redeemed or converted, it added. The notes will have an interest of 0.75% a year, Splunk said.
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