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Q2 Holdings to issue $200M convertible senior notes

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Q2 Holdings to issue $200M convertible senior notes

Q2 Holdings Inc. will offer $200 million of convertible senior notes due Feb. 15, 2023, in a private placement.

The company expects to grant an option to the initial purchasers to buy up to an additional $30 million of convertible notes. The notes are expected to pay interest semiannually.

In connection with the offering, the company intends to enter into privately negotiated convertible note hedge transactions with one or more financial institutions. The convertible note hedge transactions will cover the number of common shares underlying the convertible notes.

Q2 Holdings also intends to enter into privately negotiated warrant transactions wherein it will sell warrants to purchase up to the same number of common shares.

Q2 Holdings intends to use a portion of the net proceeds of the offering to pay the cost of the convertible note hedge transactions. The remainder of the net proceeds will be used for general corporate purposes, including working capital, capital expenditures, potential acquisitions and strategic transactions.