Convertible senior notes, explained Convertible senior notes are hybrid debt instruments companies use to raise capital without immediate dilution while giving investors the opportunity to convert debt into equity under favorable conditions.

(Nasdaq: DDOG) ("Datadog"), the monitoring and security platform for cloud applications, today announced that it intends to offer, subject to market conditions and other factors, $775 million aggregate principal amount of Convertible Senior Notes due 2029 (the "notes") in a private placement (the "offering") to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933,

Datadog (NASDAQ:DDOG) priced $870M aggregate principal amount of 0% convertible senior notes due 2029 in a private placement to qualified institutional buyers. The offering size was increased from the previously announced offering size of $775M aggregate principal amount of notes.

Datadog estimates that the net proceeds from the offering will be approximately $851.6 million (or approximately $979.0 million if the initial purchasers exercise their option to purchase additional notes in full), after deducting the initial purchasers' discount and commissions and estimated offering expenses payable by Datadog.