GoPro to offer US$100.0 million of convertible senior notes

GoPro, Inc., San Mateo, CA, USA, has announced its proposes to offer US$100.0 million aggregate principal amount of convertible senior notes due 2025 subject to market conditions and other factors. According to a press release, the notes are to be offered and sold in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Act”). The action cam supplier also intends to grant the initial purchasers of the notes an option to purchase, within a 13-day period from, and including the date on which the notes are first issued, up to an additional $15.0 million aggregate principal amount of notes.

The notes will mature on November 15, 2025, unless earlier converted, redeemed or repurchased in accordance with the terms of the notes. The interest rate, conversion rate, offering price and other terms are to be determined upon pricing of the notes.

GoPro intends to use a portion of the net proceeds for capped call transactions that are expected generally to reduce the potential dilution to the common stock upon any conversion of the notes and/or offset any cash payments GoPro is required to make in excess of the principal amount of converted notes, as the case may be, with such reduction and/or offset subject to a cap. If the initial purchasers exercise their option to purchase additional notes, GoPro expects to enter into additional capped call transactions with the option counterparties.

The remaining net proceeds are to be used for general corporate purposes, which may include, among other things, repaying indebtedness and expanding its current business through acquisitions of, or investments in, other businesses, products or technologies, GoPro said, adding there were no commitments with respect to any such acquisitions or investments at this time.