DigitalOcean repurchases $471.8M of 2030 notes
DigitalOcean Holdings, Inc. completed the repurchase of $471,828,000 principal amount of its 0.00% Convertible Senior Notes due 2030 on July 23, 2026 in separate, privately negotiated transactions with a limited number of noteholders.
Rhea-AI Filing Summary
DigitalOcean Holdings, Inc. completed the repurchase of $471,828,000 principal amount of its 0.00% Convertible Senior Notes due 2030 on July 23, 2026 in separate, privately negotiated transactions with a limited number of noteholders.
The company paid an aggregate repurchase price in cash of approximately $1.474 billion. This repurchase was funded, together with cash on hand, using the net proceeds from a previously announced registered direct equity offering of 12,543,915 shares of common stock at $117.54 per share, conducted under an automatic shelf registration statement.
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8-K Event Classification
Item 8.01 — Other Events
1 item
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Key Figures
Notes repurchased: $471,828,000 principal amount
Aggregate repurchase price: approximately $1.474 billion
Shares issued in Equity Offering: 12,543,915 shares
+3 more
6 metrics
Notes repurchased
$471,828,000 principal amount
0.00% Convertible Senior Notes due 2030 repurchased on July 23, 2026
Aggregate repurchase price
approximately $1.474 billion
Total cash paid to repurchase the 0.00% Convertible Senior Notes due 2030
Shares issued in Equity Offering
12,543,915 shares
Common stock sold in concurrent registered direct offering
Equity Offering price
$117.54 per share
Price per share for common stock sold in the registered direct offering
Coupon rate
0.00%
Interest rate on the Convertible Senior Notes due 2030 that were repurchased
Shelf registration file number
333-294563
Automatic shelf registration statement under which the Equity Offering was made
Key Terms
0.00% Convertible Senior Notes due 2030, registered direct offering, automatic shelf registration statement, free writing prospectus, +2 more
6 terms
0.00% Convertible Senior Notes due 2030 financial
"repurchase of $471,828,000 principal amount of its outstanding 0.00% Convertible Senior Notes due 2030"
registered direct offering financial
"previously announced concurrent registered direct offering of 12,543,915 shares of its common stock"
A registered direct offering is a way for a company to sell new shares of its stock directly to select investors with regulatory approval. This method allows the company to raise funds quickly and efficiently without needing a public auction, similar to offering exclusive access to a limited number of buyers. For investors, it often provides an opportunity to purchase shares at a favorable price, while giving the company immediate access to capital.
automatic shelf registration statement regulatory
"filed as part of the Company’s automatic shelf registration statement (File No. 333-294563)"
An automatic shelf registration statement is a pre-approved filing that companies submit to securities regulators, allowing them to sell new shares or bonds quickly and efficiently when needed. It acts like a standing permit, enabling the company to raise money without going through a lengthy approval process each time, which can be helpful for responding promptly to market opportunities or needs. For investors, it provides transparency about the company's ability to raise funds and signals planning flexibility.
free writing prospectus regulatory
"pricing term sheet, dated July 15, 2026, and filed with the SEC as a free writing prospectus"
A free writing prospectus is any written communication about a public securities offering that supplements the formal registration document and is delivered to potential investors without being filed in full in the official registration statement. It matters because it can include up-to-the-minute details, risks, or projections that affect how investors value the offering—think of it as a real-time update or flyer that adds important context beyond the static, formal brochure.
preliminary prospectus supplement regulatory
"The Equity Offering was made pursuant to a preliminary prospectus supplement, dated July 14, 2026"
A preliminary prospectus supplement is an initial document that provides important details about a new stock or bond offering before it is finalized. It helps investors understand what is being sold and why, so they can decide whether to invest. Think of it as a preview before the full sales brochure is ready.
final prospectus supplement regulatory
"a final prospectus supplement, dated July 15, 2026, and filed with the SEC on July 17, 2026"
A final prospectus supplement is the definitive document that completes a public securities offering, spelling out the exact terms, number and price of shares or bonds being sold, key risks, and how the proceeds will be used. Investors treat it like the final recipe or instruction sheet for an investment: it replaces earlier drafts and provides the binding, detailed information needed to judge the value and risk before committing funds.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What debt transaction did DigitalOcean (DOCN) complete on July 23, 2026?
DigitalOcean completed repurchases of $471,828,000 principal amount of its 0.00% Convertible Senior Notes due 2030 through separate, privately negotiated transactions with a limited number of holders, paying an aggregate cash repurchase price of approximately $1.474 billion.
How did DigitalOcean (DOCN) fund the repurchase of its 2030 convertible notes?
The repurchase was funded with net proceeds from a registered direct equity offering and cash on hand. DigitalOcean sold 12,543,915 common shares at $117.54 per share, with those proceeds, together with existing cash, used to pay approximately $1.474 billion.
What were the terms of DigitalOcean (DOCN)’s 0.00% Convertible Senior Notes due 2030 involved in this event?
The transaction involved 0.00% Convertible Senior Notes due 2030, of which $471,828,000 principal amount was repurchased. These notes carry a 0.00% coupon and the repurchase was executed through privately negotiated deals with a limited number of existing holders.
Under what registration framework did DigitalOcean (DOCN) conduct the equity offering linked to the note repurchase?
The equity offering was conducted under an automatic shelf registration statement (File No. 333-294563) effective March 24, 2026. It relied on a preliminary and final prospectus supplement, a pricing term sheet filed as a free writing prospectus, and the related base prospectus.
AI-generated analysis. How Rhea-AI works. Not financial advice.
