Palo Alto Networks to offer $1.5 bln aggregate principal amount of convertible senior notes due in 2023 in a private placement (211.16)
In connection with the offering of the notes, Palo Alto Networks expects to enter into privately negotiated convertible note hedge transactions with certain financial institutions, which may include certain of the initial purchasers and/or their respective affiliates. Palo Alto Networks expects to use a portion of the net proceeds of the offering of the notes to pay the cost of the convertible note hedge transactions (after such cost is partially offset by the proceeds to Palo Alto Networks of the warrant transactions described above), and to use the remaining proceeds of the offering for general corporate purposes, which may include working capital, capital expenditures, potential acquisitions, strategic transactions, the payment of amounts due upon conversion, at maturity or upon repurchase of Palo Alto Networks' outstanding 0% Convertible Senior Notes due 2019 and repurchases of Common Stock pursuant to Palo Alto Networks' stock repurchase program.