Tenable Holdings (TENB) proposed a private offering of $650 million in convertible senior notes due 2031. The offering targets qualified institutional buyers and includes a 13-day option for purchasers to buy an additional $65 million in notes. Final interest rates and conversion terms will be set at the time of pricing.
The company plans to allocate up to $200 million of the proceeds to repurchase its common stock. Additional funds will repay existing term loans and support general corporate purposes.
Tenable also intends to enter capped call transactions to reduce potential stock dilution from the notes. Following the offering, the company expects to establish a new senior secured revolving credit facility.