Dynatrace's Subsidiary Prices Private Placement Of $1.25 Billion Of Exchangeable Senior Notes

(RTTNews) - Tuesday, Dynatrace, Inc. (DT) announced that its indirect wholly-owned subsidiary, Dynatrace LLC, has priced its 0.00% Exchangeable Senior Notes due 2031 in a private placement.

The notes will be exchangeable at an initial exchange rate of 15.5585 shares of Dynatrace's common stock per $1,000 principal amount of notes.

The company has also granted the initial purchasers of the notes an option to purchase up to an additional $187.5 million aggregate principal amount of notes, for settlement during 13 days beginning on, and including, the first date on which the notes are issued.

The sale of the notes to the initial purchasers is anticipated to result in approximately $1,227 million in net proceeds to the company. Of this, about $145.9 million will be used to pay the cost of the exchangeable note hedge transactions, and around $134.7 million will be utilized to repurchase approximately 2.83 million shares of the common stock from certain purchasers of the notes in privately negotiated transactions.

In addition to this, the company plans to use a portion of the net proceeds to pay the cost of additional exchangeable note hedge transactions.

The sale of the notes to the initial purchasers is expected to settle on August 20, 2026.

In the pre-market hours, DT is trading at $48.00, up 0.85 percent on the NYSE.