secwatch.observer — SEC 8-K summary
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Issuer:     Cloudflare, Inc. (NET)
CIK:        0001477333
Form:       8-K
Filed at:   2021-08-13T23:59:59+00:00
Accession:  0001193125-21-246066
Event type: debt
Sentiment:  neutral
Materiality: 0.70
Item codes: 1.01, 2.03, 3.02, 8.01, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

Cloudflare prices $1.125B 0% convertible notes due 2026; exchanges $400M of 2025 notes
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- Offering upsized from $1B to $1.125B; initial conversion price ~$191.34 per share (52.5% premium to $125.47 close).
- Net proceeds ~$1,108M; ~$75M used for capped call transactions, ~$400.7M to exchange 2025 notes.
- Exchange of $400M aggregate principal of 0.75% 2025 notes for cash and 7,558,509 shares; $175M of 2025 notes remain.
- Capped call transactions with strike ~$191.34 and cap ~$250.94 reduce dilution on conversion; expire over 40 days through Aug 2026.
- Notes mature Aug 15, 2026; redeemable after Aug 20, 2024 if stock price ≥130% of conversion price for 20 of 30 trading days.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1477333/000119312521246066/0001193125-21-246066-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1477333/000119312521246066/d181190d8k.htm
  HTML page:      https://secwatch.observer/filing/0001193125-21-246066

License: Source filings: public domain (SEC EDGAR). Summaries (headline + bullets): CC-BY-4.0; attribute https://secwatch.observer