Open source software giant Red Hat said it has completed its previously announced sale of $700 million worth of convertible notes.
The Raleigh-based company reported that $375 million of the proceeds from the offering will be used to repurchase shares of its common stock. Another $257 million is earmarked for “general corporate purposes,” potentially including acquisitions.
Red Hat’s senior convertible notes, sold to institutional investors, will mature in 2019. The notes are ultimately convertible to cash, shares of Red Hat common stock or a combination of the two – at Red Hat’s option.
As of Aug. 31, Red Hat had $1.32 billion in cash.
Red Hat shares closed Wednesday at $58.56, up $1.88. Its shares have risen 5 percent this year.