The offering targets qualified institutional buyers and includes a 13-day option for those investors to purchase an additional $41.3 million in notes. These unsecured obligations will pay interest semiannually, with the specific rate to be determined upon pricing. Bandwidth retains the right to settle conversions using cash, company shares, or a mix of both.

Management intends to deploy the proceeds across several fronts, including capped call transactions and share repurchases. A portion of the capital is earmarked to buy back existing 2028 convertible notes and pay down outstanding credit facility borrowings. The remaining funds are designated for general corporate purposes, though the immediate impact of the debt issuance on the company's valuation caused shares to drop to $56.38.