SAN FRANCISCO, Calif .– (BUSINESS WIRE) –Zynga Inc. (Nasdaq: ZNGA), a global leader in interactive entertainment, $ 600 million aggregate principal amount of convertible senior notes two 2024 (the “notes”) in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). 13 million aggregate principal amount of the Zynga intends to grant the initial purchasers of the notes to an option, during a 90-day period beginning on, notes.
The notes will be senior unsecured obligations of payroll and payable interest semiannually in arrears. Zynga's Class A Common Stock Shares of Zynga's Common Stock, at Zynga's common stock, at Zynga's election. The interest rate, initial conversion rate and other terms of the offer.
Zynga intends to use a portion of the net proceeds from the offer to pay the cost of the capped call transactions described below. Zynga intends to use the remainder of the net proceeds for working capital and other general corporate purposes, which may include capital expenditures, debt repayment, and potential acquisitions and future transactions. However, it has not designated any specific uses and has no current agreements with respect to any material acquisition or strategic transaction.
In connection with the pricing of the notes, Zynga expects to enter into transactions with one or more initial purchasers and / or their respective affiliates and / or other financial institutions (the "option counterparties"). Zynga's stock market is a stock market. Zynga is required to make excess cash. reduction and / or offset subject to a cap. Zynga expects to enter into additional capped call transactions with the option counterparties.
Zynga expects that, in connection with their initial hedges of capped call transactions, the option counterparties or their respective affiliates may enter into derivative transactions with Zynga's common stock and / or purchase shares of Zynga's common stock concurrently with or shortly after the pricing of the notes. This activity could increase or reduce the size of any stock market or the notes at that time.
In addition, Zynga expects that option counterparties or their respective affiliates may modify their hedge positions by entering into or unwinding various derivatives with respect to Zynga's common stock and / or Zynga's common stock or other securities of secondary market transactions following in the course of the conversion of notes. This could also cause or prevent the increase in the value of the subject. that a noteholder will receive upon conversion of its notes.
Neither the notes, nor any of the shares of Zynga's common stock potentially executable upon conversion of the notes, have been, nor will be, registered under the Securities in the United States absent registration or the exemption from, or in the transaction filing with the Securities Act and other applicable securities laws.
This press release is neither an offer to sell nor a solicitation of an offer to any securities, nor shall it be a solicitation or sale of securities in any jurisdiction, such as solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.