NortonLifeLock Inc. Announces Convertible Notes Purchase Agreement

NortonLifeLock Inc., a leading provider of consumer cybersecurity solutions, has filed a Form 8-K with the Securities and Exchange Commission (SEC) disclosing its entry into a Convertible Notes Purchase Agreement with affiliates of Silver Lake Partners and Bain Capital Fund. As part of the agreement, NortonLifeLock will repurchase $625 million in aggregate principal amount of 2.00% convertible unsecured senior notes due 2022, which are convertible into common stock at a conversion price of approximately $10.23 per share.

Key Takeaways:

• NortonLifeLock Inc. has entered into a Convertible Notes Purchase Agreement with affiliates of Silver Lake Partners and Bain Capital Fund.
• The agreement involves the repurchase of $625 million in aggregate principal amount of 2.00% convertible unsecured senior notes due 2022.
• The notes are convertible into common stock at a conversion price of approximately $10.23 per share.
• NortonLifeLock will pay Silver Lake and Bain an aggregate of $1.18 billion as part of the agreement.
• The settlement is expected to occur by May 26, 2020.
• The transaction represents a significant event for NortonLifeLock, with implications for investors and shareholders.
• The company's leadership team has not commented publicly on the agreement, but industry experts expect the move to have a positive impact on the company's financial performance.

Statistics:

• $625 million: aggregate principal amount of convertible notes due 2022 to be repurchased.
• $1.18 billion: total payment to be made to Silver Lake and Bain as part of the agreement.
• 97.7364: conversion rate for notes convertible into common stock.
• $10.23: approximate conversion price per share of common stock.
• May 26, 2020: expected settlement date of the Note Repurchase.

Sources:

• FORM 8-K (Current Report) filed with the Securities and Exchange Commission on May 18, 2020.