Stock Alert: RingCentral Down 5% After Pricing Convertible Note Offering

(RTTNews) - Shares of RingCentral Inc. (RNG) are down almost 5 percent or $13.51 in Friday's morning trade at $264.54.

Friday, RingCentral said it has priced $650 million aggregate principal amount of 0 percent convertible senior notes due 2026 in a private placement to qualified institutional buyers.

The notes priced with a 52.5 percent conversion premium to the last reported sale price per share, of about $278 per share, of RingCentral's Class A common stock on September 10, 2020.

The company said it will use approximately $452.5 million of the net proceeds from the offering to repurchase about $132.6 million of principal amount of its outstanding 2023 notes. The remainder of the proceeds will be used for general corporate purposes, among others.

RingCentral has traded in a range of $120.03 to $317.84 in the past 52 weeks.