RALEIGH – Bandwidth may be on the verg of growing again through acquisition, announcing plans to raise nearly $300 million in new capital through the issuance of notes.

The news came after the markets closed Wednesday.

Among the reasons cited for the funding: A variety of reasons, which might include “capital expenditures and potential acquisitions and strategic transactions.”

“However, Bandwidth (Nasdaq: BAND) has not designated any specific uses and has no current agreements with respect to any acquisition or strategic transaction,” the company said.

The offering includes $250 million in notes due for 2028.

Bandwidth said it also will make available to purchasers a 13-day option to acquire another $37.5 million in notes.

Bandwidth made a major acquisition last fall and recently reported quarterly financials that topped Wall Street expectaions. Its shares closed Wednesday at $136.10. The 52-week range of the stock is $50-89-$198.60.

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The company also said some of the funds witll cover expected “capped call” transactions.

“A capital call (also known as a draw down or a capital commitment) is a legal right of an investment firm or an insurance firm to demand a portion of the money promised to it by an investor.,” notes Wikipedia. “The capital call is the act of actually transferring the promised funds to the investment target.”

Explained Bandwidth: “In connection with the pricing of the Notes, Bandwidth expects to enter into one or more privately negotiated capped call transactions with certain of the initial purchasers of the Notes and/or their respective affiliates and/or other financial institutions … The capped call transactions are expected generally to reduce the potential dilution to Bandwidth’s Class A common stock upon any conversion of the Notes and/or to offset any cash payments Bandwidth is required to make in excess of the principal amount of the converted Notes …”

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