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BOSTON, MA – March 28, 2017 — /BackupReview.info/ — Carbonite, Inc. (NASDAQ:CARB) (“Carbonite” or the “Company”) announced today that it intends to offer, subject to market and other conditions, $125 million aggregate principal amount of Convertible Senior Notes due 2022 (the “notes”) in a private offering. The notes will be offered only to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). Carbonite also expects to grant to the initial purchasers of the notes a 30-day option to purchase up to an additional $18.75 million aggregate principal amount of the notes.
Carbonite intends to use (i) $40.0 million of the net proceeds from the offering to repay all amounts outstanding under its revolving credit facility, including the related letters of credit, and to terminate the facility, (ii) up to $20.0 million of the net proceeds from this offering to repurchase shares of its common stock from purchasers of notes in the offering in privately negotiated transactions effected through one or more of the initial purchasers or their affiliates conducted currently with the pricing of the notes and (iii) the remaining net proceeds for general corporate purposes, including potential acquisitions.
Carbonite expects the purchase price per share of its common stock in repurchases conducted concurrently with the pricing of the notes to equal the closing sale price per share of its common stock on the Nasdaq Global Market on the date of the pricing of the notes. Any such repurchases may increase, or prevent a decrease in, the market price of Carbonite’s common stock or the notes, which could result in a higher effective conversion price for the notes.
The notes will be Carbonite’s senior unsecured obligations. The notes will mature on April 1, 2022, unless earlier repurchased, redeemed or converted. Carbonite will satisfy any conversion elections by paying or delivering, as the case may be, cash, shares of its common stock or a combination of cash and shares of its common stock, at its election. The interest rate, the initial conversion rate and the other terms of the notes will be determined by negotiations between Carbonite and the initial purchasers of the notes.
The notes and shares of Carbonite common stock issuable upon conversion, if any, have not been registered under the Securities Act, or under any U.S. state securities laws or other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
This press release is neither an offer to sell nor a solicitation of an offer to buy any of these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.
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