Backblaze Launches $150M Convertible Notes Offering to Fund AI Storage Expansion
BLZE has more than doubled off its 52-week low of $3.261.
Summary
Backblaze announced a proposed private offering of $150 million in convertible senior notes due 2031, with a 13-day option for an additional $22.5 million. The notes are convertible into cash, stock, or a combination at the company's election, and Backblaze plans to use capped call transactions to limit dilution. Proceeds will fund general corporate purposes and capital expenditures, following the recent CoreWeave strategic agreement and strong Q2 results. The offering adds leverage but provides growth capital for AI-related storage demand. Backblaze closed the offering at $201.25 million, including full exercise of the $26.25 million option, with 0.00% coupon, initial conversion price of $21.94, and cap price of $33.76. The credit facility was increased from $20 million to $50 million and extended to April 30, 2030.
Updated with an SEC 8-K filing · What changed
Updates
· SEC 8-K — Backblaze closed the offering at $201.25 million, including full exercise of the $26.25 million option, with 0.00% coupon, initial conversion price of $21.94, and cap price of $33.76. The credit facility was increased from $20 million to $50 million and extended to April 30, 2030.
At the time of this announcement, BLZE was trading at $19.20 on NASDAQ in the Technology sector, with a market capitalization of approximately $1.2B. The 52-week trading range was $3.26 to $23.99. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: BusinessWire.