STOCK TITAN

Backblaze (BLZE) adds convertible notes, boosts credit line to $50M

(High)
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Backblaze, Inc. (BLZE) plans a private offering of $150 million aggregate principal amount of Convertible Senior Notes due 2031 to qualified institutional buyers, with an option for initial purchasers to buy up to an additional $22.5 million. The notes will be senior, unsecured obligations and will be convertible into cash, Class A common stock, or a combination, at Backblaze’s election, with final interest and conversion terms set at pricing. Backblaze expects to use part of the net proceeds to fund capped call transactions designed to reduce potential dilution and/or cash payments upon conversion, and the remainder for general corporate purposes, including capital expenditures.

Separately, Backblaze agreed to a Fourth Amendment to its credit agreement to permit the notes and capped calls and expects, at closing, to enter a Fifth Amendment that will increase its senior secured revolving credit facility from $20 million to $50 million, extend the maturity from June 4, 2028 to April 30, 2030, and modify financial covenants, including adding a fixed charge coverage ratio test, removing the minimum consolidated EBITDA threshold, and changing minimum liquidity and maximum total leverage ratio standards.

Positive

  • None.

Negative

  • Backblaze plans to add $150 million (plus up to $22.5 million extra) of Convertible Senior Notes and expand its revolving credit facility from $20 million to $50 million, increasing total debt capacity and future fixed obligations.

Filing Explained

The proposed notes and any Class A shares potentially issuable upon conversion are unregistered, so they may not be offered or sold in the United States unless an applicable exemption applies.

Item 8.01 Other Events Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Convertible notes principal $150 million Aggregate principal amount of Convertible Senior Notes due 2031 in proposed private offering
Over-allotment option $22.5 million Additional aggregate principal amount of notes initial purchasers may buy within 13 days
Revolver capacity increase $20 million to $50 million Total borrowing capacity of senior secured revolving credit facility after Fifth Amendment
Revolver maturity extension June 4, 2028 to April 30, 2030 New maturity date for the revolving credit facility under the existing credit agreement
Notes maturity year 2031 Stated maturity year of the new Convertible Senior Notes
Customers more than 500,000 Number of customers using Backblaze’s storage platform across 175 countries
Countries served 175 Number of countries where Backblaze’s end users are located
Convertible Senior Notes financial
"aggregate principal amount of Convertible Senior Notes due 2031"
Convertible senior notes are a type of loan that a company issues to investors, which can be turned into company shares later on. They are called "senior" because they are paid back before other debts if the company runs into trouble. This allows investors to earn interest like a loan but also have the chance to own part of the company if its value rises.
capped call transactions financial
"use a portion of the net proceeds from the Offering to pay the cost of the capped call transactions"
Capped call transactions are agreements where investors buy options that give them the chance to benefit if a stock's price goes up, but with a limit on how much they can gain. This helps protect them from paying too much if the stock's price rises a lot, similar to having a maximum limit on a reward. They matter because they help investors manage risk while still allowing some upside potential.
fixed charge coverage ratio financial
"adding a new fixed charge coverage ratio test"
A fixed charge coverage ratio measures how well a company's operating income can cover its fixed, recurring obligations like interest payments and lease costs. Think of it as a safety margin — the higher the number, the more comfortably a business can pay steady bills from its normal earnings, which matters to investors because it signals financial stability, lower default risk, and greater ability to withstand revenue dips.
minimum liquidity financial
"modifying the standards applicable to the existing minimum liquidity"
Minimum liquidity is the smallest amount of cash or easily sold assets an organization or market needs to meet immediate bills and allow normal buying and selling — like a household’s emergency fund that covers rent and groceries. Investors care because if liquidity falls below this level, a company may miss payments, be forced to sell assets at bad prices, or see its shares become hard to trade, all of which raise risk and can hurt returns.
maximum total leverage ratio financial
"modifying the standards applicable to the existing minimum liquidity and maximum total leverage ratio covenants"

FAQ

What type and size of securities offering did Backblaze (BLZE) announce?

Backblaze announced a proposed private offering of $150 million aggregate principal amount of Convertible Senior Notes due 2031. Initial purchasers may also receive a 13-day option to purchase up to an additional $22.5 million of notes to cover over-allotments.

How does Backblaze (BLZE) plan to use the proceeds from the convertible notes?

Backblaze plans to use part of the net proceeds to pay for capped call transactions linked to the notes. The remaining net proceeds are earmarked for general corporate purposes, including capital expenditures to support the business.

What changes are being made to Backblaze’s (BLZE) revolving credit facility?

Backblaze expects to increase its senior secured revolving credit facility from $20 million to $50 million and extend the maturity from June 4, 2028 to April 30, 2030, while also modifying certain financial covenants.

How could the capped call transactions affect dilution for Backblaze (BLZE) shareholders?

The capped call transactions are expected to reduce potential dilution from conversions of the notes and/or offset cash payments above principal, subject to a cap, by economically hedging Backblaze’s exposure to its Class A common stock.

Who can buy Backblaze’s (BLZE) new Convertible Senior Notes and are they registered?

The notes will be sold in a private offering only to qualified institutional buyers and will not be registered under the Securities Act. The notes and any conversion shares can only be resold under an applicable registration exemption.

What covenant changes will Backblaze’s (BLZE) new credit agreement amendment introduce?

The anticipated Fifth Amendment will add a new fixed charge coverage ratio test, remove the minimum consolidated EBITDA threshold, and modify standards for the existing minimum liquidity and maximum total leverage ratio covenants, effective upon closing of the note offering.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Learn about SEC filing dates

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
 
August 18, 2026
Date of Report (date of earliest event reported)
 
Backblaze, Inc.
(Exact name of registrant as specified in its charter)
 
Delaware
001-41026
20-8893125
(State or other jurisdiction of incorporation or organization)
(Commission File Number)
(I.R.S. Employer Identification No.)

2261 Market Street STE 81006,
San Francisco, California
 
94114
(Address of Principal Executive Offices)
 
(Zip Code)

(650) 352-3738
Registrant’s telephone number, including area code
 
Not Applicable
(Former name or former address, if changed since last report.)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class
Trading
Symbol(s)
Name of each exchange on which
registered
Class A Common Stock, par value $0.0001 per share
BLZE
NASDAQ

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
 




Item 8.01
Other Events.
 
On August 18, 2026, Backblaze, Inc. (the “Company”) issued a press release announcing its intention to offer $150 million aggregate principal amount of Convertible Senior Notes due 2031 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, as amended (the “Securities Act”). The Company intends to use a portion of the net proceeds from the offering to fund the cost of entering into capped call transactions and the remainder for general corporate purposes, including capital expenditures.
 
A copy of the press release announcing the proposed offering is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
 
Credit Agreement Amendments
 
On August 18, 2026, the Company entered into a Fourth Amendment to its existing credit agreement with Citizens Bank, N.A., which permitted the issuance of the notes and the capped call transactions. At closing, the Company intends to enter into a Fifth Amendment to its existing credit agreement that will (i) increase the total borrowing capacity of the senior secured revolving credit facility under the existing credit agreement from $20 million to $50 million, (ii) extend the maturity date from June 4, 2028, to April 30, 2030, and (iii) effective upon the closing of the offering of the notes, modify certain financial covenants, including by adding a new fixed charge coverage ratio test, removing the minimum consolidated EBITDA threshold, and modifying the standards applicable to the existing minimum liquidity and maximum total leverage ratio covenants.
 
Item 9.01
Financial Statements and Exhibits.
 
(d) Exhibits.
 
Exhibit No.
Description
99.1
Press Release issued by Backblaze, Inc. dated August 18, 2026
104 Cover Page Interactive Data File (formatted as Inline XBRL)


SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
Date:  August 18, 2026
Backblaze, Inc.
   
 
By:
/s/ Marc Suidan
   
Marc Suidan, Chief Financial Officer




Exhibit 99.1

Backblaze Announces Proposed Private Offering of $150 Million of Convertible Senior Notes

SAN FRANCISCO, Calif.--(BUSINESS WIRE)-- Backblaze, Inc. (Nasdaq: BLZE), the storage platform powering AI and data-intensive workloads, today announced that it intends to offer, subject to market and other conditions, $150 million aggregate principal amount of Convertible Senior Notes due 2031 (the "Notes") in a private offering (the "Offering") to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"). Backblaze also expects to grant the initial purchasers of the Notes a 13-day option to purchase up to an additional $22.5 million aggregate principal amount of the Notes, solely to cover over-allotments, if any.

The Notes will be senior, unsecured obligations of Backblaze. The Notes will be convertible into cash, shares of Backblaze's Class A common stock or a combination thereof, at Backblaze's election. The interest rate, initial conversion rate and other terms of the Notes are to be determined upon pricing of the Offering.

Backblaze intends to use a portion of the net proceeds from the Offering to pay the cost of the capped call transactions described below. Backblaze intends to use the remainder of the net proceeds from the Offering for general corporate purposes, including capital expenditures.

In connection with the pricing of the Notes, Backblaze expects to enter into one or more privately negotiated capped call transactions with certain of the initial purchasers of the Notes or their respective affiliates and/or other financial institutions (the "Option Counterparties"). The capped call transactions are expected generally to reduce the potential dilution to Backblaze’s Class A common stock upon any conversion of the Notes and/or to offset any cash payments Backblaze is required to make in excess of the principal amount of the converted Notes, as the case may be, upon any conversion of Notes, with such reduction and/or offset subject to a cap.

Backblaze expects that, in connection with establishing their initial hedges of the capped call transactions, the Option Counterparties or their respective affiliates expect to purchase shares of Backblaze's Class A common stock and/or enter into various derivative transactions with respect to Backblaze's Class A common stock concurrently with or shortly after the pricing of the Notes. This activity could increase (or reduce the size of any decrease in) the market price of Backblaze's Class A common stock or the Notes at that time. In addition, the Option Counterparties or their respective affiliates may modify their hedge positions by entering into or unwinding various derivatives with respect to the Class A common stock and/or by purchasing or selling shares of Backblaze's Class A common stock or other securities of Backblaze in secondary market transactions following the pricing of the Notes and from time to time prior to the maturity of the Notes (and are likely to do so during any observation period related to a conversion of the Notes or following any repurchase of the Notes by Backblaze in connection with any redemption or fundamental change). This activity could also cause or avoid an increase or a decrease in the market price of Backblaze's Class A common stock or the Notes, which could affect the ability of holders of the Notes to convert the Notes and, to the extent the activity occurs during any observation period related to a conversion of the Notes, it could affect the number of shares of Class A common stock and value of the consideration that holders of the Notes will receive upon conversion of the Notes

BofA Securities, Inc. is acting as lead bookrunner for the Offering.  

The Notes will be offered only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act. The offer and sale of the Notes and the shares of Backblaze's Class A common stock potentially issuable upon conversion of the Notes, if any, have not been, and will not be, registered under the Securities Act or the securities laws of any other jurisdiction, and unless so registered, the Notes and such shares, if any, may not be offered or sold in the United States except pursuant to an applicable exemption from such registration requirements.


This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

About Backblaze

Backblaze is the object storage layer powering AI infrastructure and data-intensive workloads at scale. Built over two decades, the company has leveraged hardware, software, and operational innovation into a platform that delivers the performance and economics the AI era demands—without lock-in. Today, more than 500,000 customers trust Backblaze to move and store the data powering their businesses, reaching hundreds of millions of end users across 175 countries. For more information, visit www.backblaze.com.

Forward-Looking Statements

This press release contains certain statements that may constitute “forward-looking statements” for purposes of the federal securities laws. Forward-looking statements include, but are not limited to, the intended use of proceeds. These statements reflect Backblaze’s or its management team’s expectations, hopes, beliefs, intentions or strategies regarding the future, projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, and are not guarantees of future performance. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of Backblaze’s control. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to risks and uncertainties included under the heading “Risk Factors” in the Quarterly Report on Form 10-Q filed by the Company on August 3, 2026, as such factors may be updated from time to time in our other filings with the SEC, accessible on the SEC’s website at www.sec.gov and the Investor Relations section of our website at www.backblaze.com. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and, except as required by law, the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

Investors Contact
Mimi Kong
 ir@backblaze.com

Press Contact
Renatta Siewert
press@backblaze.com



Filing Exhibits & Attachments

4 documents