Cloudflare, Inc. has announced a proposed private offering of $1.75 billion in Convertible Senior Notes due 2030. The offering is aimed at qualified institutional buyers under Rule 144A. The company has also granted initial purchasers a 13-day option to buy up to an additional $250 million of notes to cover over-allotments. Cloudflare plans to use part of the net proceeds to finance capped call transactions, which are designed to offset potential dilution of its Class A common stock upon conversion of the notes. Remaining funds will be used for general corporate purposes, including working capital, capital expenditures, debt repayment, and potential acquisitions.
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