secwatch.observer — SEC 8-K summary
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Issuer:     Datadog, Inc. (DDOG)
CIK:        0001561550
Form:       8-K
Filed at:   2024-12-12T23:59:59+00:00
Accession:  0001193125-24-277122
Event type: other_material
Sentiment:  neutral
Materiality: 0.85
Item codes: 1.01, 1.02, 2.03, 3.02, 8.01, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

Datadog issues $1B 0% convertible notes due 2029, repurchases $112M of 2025 notes
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- $1B aggregate principal (0.00% coupon) convertible notes due Dec 1, 2029; initial conversion price ~$217.60/share (35% premium over $161.19 close).
- Net proceeds of $979.0M; used $100.9M for capped call transactions and ~$196.8M to repurchase $112M principal of 0.125% 2025 notes.
- Capped calls with cap price of $322.38/share (100% premium) to reduce potential dilution upon conversion.
- Unwind of existing capped calls related to repurchased 2025 notes generates ~$54.7M cash termination payment.
- Remaining net proceeds earmarked for general corporate purposes, including potential acquisitions or strategic investments.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1561550/000119312524277122/0001193125-24-277122-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1561550/000119312524277122/d853741d8k.htm
  HTML page:      https://secwatch.observer/filing/0001193125-24-277122

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