Aug. 19 at 12:10 AM
Backblaze announced plans to issue
$150 million of 2031 convertible senior notes in a private placement to qualified institutional buyers under Rule 144A. The senior unsecured notes may be converted into shares, creating potential dilution for existing shareholders.
Initial purchasers also have a 13-day option to buy up to
$22.5 million of additional notes, potentially bringing the offering to
$172.5 million. BofA Securities is serving as lead arranger. The announcement came after BLZE had gained more than 60% over the previous two weeks, increasing profit-taking and dilution concerns.
The broader market was essentially flat, indicating the selloff was driven by the financing announcement rather than macro or sector weakness.
$BLZE