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NETSUITE TO BORROW $270 MILLION
NetSuite plans to borrow $270 million in principal through the sale of convertible senior notes. There is also an additional $40 million authorized to cover over-allotments, according to this week's announcement of the debt offering. The announcement gives a typical laundry list of possible uses for proceeds, including working capital and other general purposes. But I get the feeling the item citing possible acquisitions in complementary businesses, products, services, technologies and capital expenditures” is going to get its share.
NetSuite stressed it does not have any agreements of investments in such at this point. However, borrowing to buy products or technologies to fill in gaps strikes me as fitting the tone of announcements at this month's SuiteWorld conference. The offering also authorizes the purchase of up to $30 million in stock. Notes mature on June 1, 2018 unless repurchased or converted. Holders have the right to require NetSuite to repurchase notes at 100 percent of principal plus accrued and unpaid interest “upon the occurrence of certain events”, which we might find out if they happen.
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