Cloudflare, a US-based cybersecurity and cloud infrastructure company, said on Aug. 10 that it plans to privately offer US$2.175 billion in senior convertible notes due 2031.

The company said it will use the proceeds for general corporate purposes and to cover the cost of derivative transactions tied to the offering.

The announcement came after Cloudflare last week raised its full-year profit forecast above analyst estimates.

The update sent shares up 5.6% on Aug. 7 and more than 52% this year. Shares then fell as much as 4% in premarket trading after the note offering was announced.

Cloudflare has used convertible financing before, including US$1.75 billion of 0% convertible senior notes due 2030, announced in June 2025, and US$575 million of 0.75% convertible senior notes due 2025 in an earlier deal.

In the June 2025 offering, Cloudflare said it paired the notes with capped call transactions to offset potential dilution from note conversions and reduce cash payments above the principal amount, subject to a cap.

🔗 Source: Bloomberg

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