Announcement
Backblaze Inc (NASDAQ:BLZE) disclosed that it will issue $150 million of senior unsecured convertible notes due 2031 in a private placement to qualified institutional buyers under Rule 144A. The company also granted initial purchasers a 13‑day option to purchase up to an additional $22.5 million of notes to cover over‑allotments. BofA Securities is acting as lead bookrunner for the offering.
Pricing and Terms
The notes are senior, unsecured obligations that may be converted at the company’s election into cash, shares of Backblaze’s Class A common stock, or a combination thereof. The interest rate, initial conversion rate and other specific terms will be determined at pricing.
Use of Proceeds
Backblaze indicated that a portion of the net proceeds will be used to enter into privately negotiated capped‑call transactions with the initial purchasers or their affiliates, intended to limit dilution of Class A shares upon conversion. The remaining proceeds will be allocated to general corporate purposes and capital expenditures.
Share Reaction
Following the announcement, Backblaze shares fell 6.7 % in after‑hours trading on Tuesday.
Company Profile
Backblaze provides object‑storage services for AI infrastructure and data‑intensive workloads, serving more than 500,000 customers across 175 countries.