Bulletin
Investor Alert

Market Pulse Archives

June 22, 2021, 8:48 a.m. EDT

Splunk stock rallies after company nabs $1 billion Silver Lake investment

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Splunk Inc. (SPLK)
  • X
    S&P 500 Index (SPX)
  • X
    iShares Expanded Tech-Software Sector ETF (IGV)

or Cancel Already have a watchlist? Log In

By Emily Bary

Shares of Splunk Inc. /zigman2/quotes/203060494/composite SPLK +0.12% are up 8% in premarket trading Tuesday after the software company announced that Silver Lake plans to invest $1 billion in the company through convertible senior notes. Splunk anticipates that it will use the proceeds from the Silver Lake investment to spend on growth initiatives and manage its capital structure, as the company has a newly authorized share-buyback program that will allow it to repurchase up to $1 billion of its stock over time. Silver Lake Chairman Kenneth Hao will join Splunk's board in conjunction with the investment. The senior notes purchased by Silver Lake will have an initial conversion price of $160 a share and will mature in July 2026, unless they are repurchased, redeemed, or converted earlier than that. The notes will bear interest at 0.75% annually. Splunk shares have declined 35% over the past year as the S&P 500 /zigman2/quotes/210599714/realtime SPX +1.32% has risen 36% and as the iShares Expanded Tech-Software Sector ETF /zigman2/quotes/201870252/composite IGV +2.00% has increased 14%.

/zigman2/quotes/203060494/composite
US : U.S.: Nasdaq
$ 125.00
+0.15 +0.12%
Volume: 2.14M
Nov. 29, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$20.17 billion
Rev. per Employee
$342,982
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
4,655.27
+60.65 +1.32%
Volume: 2.50B
Nov. 29, 2021 4:57p
loading...
/zigman2/quotes/201870252/composite
US : U.S.: Cboe BZX
$ 426.54
+8.35 +2.00%
Volume: 2.41M
Nov. 29, 2021 4:00p
loading...

Get news alerts on Splunk Inc. — or create your own.
This Story has 0 Comments
Be the first to comment
More News In
Industries

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.