Varonis Systems Sets Pricing for $400 Million Convertible Senior Notes Offering

NEW YORK, Sept. 05, 2024 — Varonis Systems, Inc. VRNS, a leader in data security and analytics, has announced the pricing of its previously announced private offering. The company has upsized its offering to $400 million aggregate principal amount of convertible senior notes that are set to mature in 2029. These 1.00% Convertible Senior Notes (the "Notes") have drawn significant investor interest due to Varonis's robust financial profile and strategic market positioning.

Details of the Convertible Senior Notes

The Notes, offering a 1.00% annual interest rate, are slated to mature on September 1, 2029, unless repurchased, redeemed, or converted prior to this date. They are unsecured and will rank equally with all of Varonis's existing and future senior unsecured debt. The initial conversion rate, as well as other terms of the conversion, will be determined by certain pre-defined conditions. Investors have shown confidence in this offering, illustrating a strong market appetite for Varonis's investment instruments.

Strategic Financial Move

This fundraising initiative represents a strategic maneuver for Varonis as it seeks to achieve long-term growth objectives. By capitalizing on the convertible nature of these Notes, Varonis can potentially lower future costs of capital and strengthen its balance sheet. It also provides the company with financial flexibility to pursue strategic expansions or research and development investments.

Impact on Shareholders

Investors and shareholders of Varonis are closely monitoring the effects of this offering. Convertible notes can sometimes dilute existing shares if a significant number of note-holders opt for conversion into equity. However, this form of financing can be less dilutive than other equity offerings and can lead to reduced interest expenses, a factor that could improve net income and potentially enhance shareholder value over time.

Varonis, Convertible, Notes