DigitalOcean Raises $625 Mln In Convertible Notes, Retires 2026 Debt And Launches $100 Mln Buyback

(RTTNews) - DigitalOcean Holdings, Inc. (DOCN) closed its $625 million offering of 0.00% convertible senior notes due 2030, including a $75 million overallotment.

Net proceeds of approximately $605.6 million will fund capped call transactions and, along with cash on hand and $380 million in term loans, repurchase $1.19 billion of 2026 convertible notes for about $1.13 billion.

CFO Matt Steinfort said the financing secures repayment of 2026 maturities, strengthens the balance sheet, and minimizes future dilution. DigitalOcean also authorized a $100 million stock buyback program through July 31, 2027.

DOCN currently trades at $31.43 or 1.26% higher on the NYSE.