03:34 AM EDT, 05/29/2024 (MT Newswires) -- Alarm.com Holdings ( ALRM ) said Wednesday it priced a private placement of $425 million of its 2.25% convertible senior notes due 2029.

Initial purchasers have been granted a 13-day option to purchase up to $75 million in additional notes.

The initial conversion rate is 11.4571 common shares per $1,000 principal amount of the notes, or equivalent to an initial conversion price of about $87.28 per share.

Net proceeds will be used to fund about $53.6 million costs of certain capped call transactions, $75 million of share repurchases and for general corporate purposes, the company said.

The offering, which has been upsized from $375 million, is expected to close on May 31, subject to customary closing conditions.

The company plans to repurchase shares in privately negotiated transactions at a price equal to the stock's closing price of $67.14 on May 28.

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