07:54 AM EST, 12/09/2024 (MT Newswires) -- Datadog ( DDOG ) said Monday it plans to offer $775 million in convertible senior notes due 2029 in a private placement.

Initial purchasers are expected to be granted a 13-day option to purchase up to about $116.3 million in additional notes.

Datadog ( DDOG ) also said it plans to enter into capped call transactions with financial institutions to reduce the potential dilution of class A common stock upon conversion of the notes.

Proceeds from the offering, expected to close in Q1 2025, will be used for several purposes, including the cost of capped call transactions and repurchasing a portion of its outstanding 0.125% convertible senior notes due 2025, the company said, adding that it will allocate the remaining funds for general corporate purposes, including acquisitions, strategic investments and working capital.

Datadog ( DDOG ) also plans to also repurchase a portion of the 2025 notes, with the terms to be negotiated with individual holders, the company added.