Penguin Solutions Announces Closing of Oversubscribed Convertible Notes Offering
Strong investor demand supported the initial purchasers’ full exercise of their $100 million option
Refinancing enhances capital structure, extends debt maturities, and reduces interest expense
With the capped calls, Penguin anticipates no net dilution from the Notes until Penguin’s share price exceeds approximately $175.05 per share, or an approximately 125% increase above Penguin’s closing price at pricing
Penguin Solutions, Inc., the AI Factory Platform Company (“Penguin,” “we” or the “Company”) (Nasdaq: PENG), today announced that it has closed its previously announced private offering of $750.0 million aggregate principal amount of 0.00% convertible senior notes due 2031 (the “Notes”) to persons reasonably believed to be qualified institutional buyers as defined in Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The $750.0 million aggregate principal amount includes $100.0 million aggregate principal amount of Notes issued in connection with the initial purchasers’ full exercise of their option. Concurrently with the offering, the Company is exchanging a portion of certain existing convertible senior notes due 2029 and 2030 for cash and shares of common stock.
