06:32 AM EDT, 06/13/2025 (MT Newswires) -- Cloudflare ( NET ) said Friday that it priced a $1.75 billion private offering of convertible senior notes due 2030.

The company said the notes don't bear regular interest and mature on June 15, 2030, adding that they're convertible at a price of about $247.67 per share and can be settled in cash, stock, or both.

To reduce potential dilution from note conversions, Cloudflare ( NET ) entered into capped call transactions, setting a cap price of roughly $469.73, it added.

The company expects to use net proceeds of $248 million from the offering for the capped call and the rest for general corporate purposes.

Cloudflare ( NET ) said it also granted the initial purchasers of the notes a 13-day option to purchase up to an additional $250 million aggregate principal amount of the notes solely to cover over-allotments.

The sale of the notes to the initial purchasers is expected to settle on Tuesday, the company said, adding that it may not redeem the notes prior to June 20, 2028.