04:28 AM EST, 12/10/2024 (MT Newswires) -- Datadog ( DDOG ) said it priced $870 million of zero percent convertible senior unsecured notes due 2029 in a private placement, upsized from $775 million.

The company granted the initial purchasers a 13-day option to buy up to an additional $130 million of notes. The sale is expected to close on Thursday.

Datadog ( DDOG ) estimates the net proceeds to be about $851.6 million to $979 million, a portion of which it expects to use to pay the cost of certain capped call transactions and to repurchase $112 million of its outstanding 0.125% convertible senior notes due 2025.

The conversion rate for the notes will initially be 4.5955 shares of class A common stock per $1,000 of notes, equivalent to an initial conversion price of about $217.60 per share.

The company said it has concurrently entered into privately negotiated transactions with certain holders of the 2025 notes to repurchase $112 million of its 2025 notes for about $196.8 million in cash.