Datadog Completes Offering of $1 Billion Convertible Senior Notes due 2029

Datadog, Inc. announced on December 12, 2024, the finalization of its private offering of $1 billion in aggregate principal amount of 0.00% Convertible Senior Notes due 2029, inclusive of the full exercise of the initial purchasers’ option to acquire up to an additional $130 million in principal amount of the Notes. The Notes, considered general unsecured obligations of the company, were issued in accordance with an Indenture dated December 12, 2024, between Datadog and U.S. Bank Trust Company, National Association, as trustee.

The Notes, which do not bear regular interest, will mature on December 1, 2029, or upon earlier conversion, redemption, or repurchase. Holders retain the option to convert all or a portion of their Notes at their discretion, under specific conditions outlined in the Indenture. Datadog may not redeem the Notes before December 6, 2027, and is subject to various conditions in the event of a fundamental change or specified corporate events.

Proceeds from the Offering totaled $979.0 million after accounting for initial purchasers’ discounts, commissions, and Offering expenses. Part of the net proceeds were utilized to cover the cost of capped call transactions and repurchase approximately $112.0 million in aggregate principal amount of its 0.125% Convertible Senior Notes due 2025. The remainder of the net proceeds is earmarked for general corporate activities, potential acquisitions or investments, and operational needs.

In conjunction with the pricing of the Notes, Datadog entered into capped call transactions with initial purchasers to mitigate potential dilution to the Common Stock upon conversion of the Notes. Furthermore, the company repurchased certain outstanding 2025 Notes through negotiated transactions.

The company issued a press release on December 9, 2024, announcing the Offering’s proposed and final pricing of the Notes. Additional details on the Offering are available in the official 8-K SEC Filing. Datadog cautions that forward-looking statements contained in the filings are subject to risks and uncertainties defined under federal securities laws.

The offering of the Notes was privately placed to qualified institutional buyers under specific exemptions, and the company intends to comply with all applicable regulations governing unregistered sales of Equity Securities. Datadog’s strategic utilization of the Offered Notes is expected to support its long-term growth objectives and operational aspirations.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Datadog’s 8K filing here.

About Datadog

Datadog, Inc operates an observability and security platform for cloud applications in North America and internationally. The company's products comprise infrastructure and application performance monitoring, log management, digital experience monitoring, continuous profiler, database monitoring, data streams and universal service monitoring, network monitoring, incident management, workflow automation, observability pipelines, cloud cost and cloud security management, application security management, cloud SIEM, sensitive data scanner, and CI visibility.