DigitalOcean (DOCN) Loses 10.56% on $500-Million Notes Issuances

We recently published 10 Stocks Collapse Overnight. DigitalOcean Holdings, Inc. (NYSE:DOCN) is one of the best-performing stocks on Monday.

DigitalOcean fell for a third straight day on Monday, losing 10.56 percent to close at $29.56 apiece following plans to raise $500 million from the issuance of convertible senior notes due 2030.

In a statement, DigitalOcean Holdings, Inc. (NYSE:DOCN) said the notes will be senior, unsecured obligations, will accrue interest payable semi-annually in arrears, and will mature on August 15, 2030, unless earlier converted, redeemed or repurchased. However, the notes will not be redeemable before August 15, 2028.

Noteholders will have the right to convert their notes to cash, its common shares, or a combination of both.

DigitalOcean Holdings, Inc. (NYSE:DOCN) also granted its initial buyers the option to purchase up to an additional $75 million within 13 days from the issuance date of the notes.

DigitalOcean Holdings, Inc. (NYSE:DOCN) said it plans to use the proceeds to pay the cost of the transaction, and the remainder to repurchase for cash a portion of its convertible senior notes due 2026.

The balance, if any, will be allocated for general corporate purposes.