Bandwidth to buy back $140 million of 0.25% convertibles due 2026

By Marisa Wong

Los Angeles, May 7 – Bandwidth Inc. announced on Tuesday that it entered into separate privately negotiated repurchase agreements with a limited number of holders of its 0.25% convertible senior notes due 2026 to repurchase about $140 million of the notes for about $127.5 million, according to an 8-K filing with the Securities and Exchange Commission.

The repurchase price will be paid in cash.

The company previously entered into capped call transactions with some financial institutions in connection with the notes. All of these transactions are expected to remain in effect notwithstanding the repurchases.

The buybacks are expected to close on May 9, subject to customary closing conditions.

Following the repurchases, about $35 million principal amount of the notes will remain outstanding.

Bandwidth is a Raleigh, N.C.-based software company.

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