Splunk CEO Doug Merritt. Photo credit: Interop Events, under Creative Commons license

Software company Splunk has announced the pricing of a proposed $1.1 billion bond offering, forging ahead with a bond sale that’ll offer convertible notes to be due by 2027. Splunk previously sought to sell $900 million in bonds but has apparently boosted that figure by an additional $200 million. The bond offering is expected to be completed on the 5th of June, 2020. Splunk’s bonds will accrue interest that’s payable semi-annually at a rate of 1.125% per year. The initial conversion rate for the bonds will equivalent 3.9164 shares of Splunk’s common stock per $1,000 principal amount of the bonds.

Splunk is reserving the right to redeem the bonds for cash anytime on or after the 20th of June, 2024. The San Francisco-based company intends to use the net proceeds from the $1.1 billion bond offering to cover the cost of previously issued bonds as well as general corporate purposes and working capital.