ZUO - Zuora stock rises postmarket on Q4 results $400M investment from Silver Lake

Zuora (NYSE:ZUO) stock rose 5% postmarket after the firm reported Q4 results and announced a $400M strategic investment from Silver Lake. Under the terms of the deal, upon initial closing on or about Mar. 24, 2022, Silver Lake will purchase $250M aggregate principal amount of convertible senior unsecured notes due 2029, with an initial conversion price of $20/share. The notes will bear interest at 3.95% per annum, payable quarterly in cash, provided that ZUO may elect to pay interest in kind at 5.50% per annum payable quarterly. The remaining $150M is expected to close at a later date within 18 months of the initial closing. ZUO also agreed to issue Silver Lake warrants to purchase up to 7.5M class A shares, exercisable for 7 years. Of these, 2.5M shares shall be exercisable at $20/share, 2.5M shares shall be exercisable at $22/share and 2.5M shares shall be exercisable at $24/share. Upon closing

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Zuora stock rises postmarket on Q4 results, $400M investment from Silver Lake