DigitalOcean Holdings (DOCN) said Monday it is planning to offer $500 million of convertible senior notes due 2030 in a private offering.

Initial purchasers are expected to be granted a 13-day period to purchase up to an additional $75 million in notes.

Net proceeds from the offering will be used to pay the cost of the capped call transactions. Remaining proceeds, together with cash on hand and up to $500 million of term loans under the company's credit facility, will be used to repurchase for cash a portion of its 0% convertible senior notes due 2026.

The company also said it is planning to adopt a new stock repurchase program authorizing the repurchase of up to $100 million in common shares.

Shares of the company fell more than 7% in recent premarket activity Monday.

Price: 30.49, Change: -2.56, Percent Change: -7.75