Cloudflare, Inc. has announced a proposed private offering of $1.75 billion in Convertible Senior Notes due 2030. This offering is targeted towards qualified institutional buyers under Rule 144A of the Securities Act. Additionally, the company may grant initial purchasers an option to acquire up to an additional $250 million to cover over-allotments. Cloudflare plans to use part of the proceeds to fund capped call transactions aimed at mitigating potential stock dilution and reducing cash payments upon note conversion. The remaining funds will be allocated for general corporate purposes, including working capital, capital expenditures, debt repayment, and potential acquisitions.
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