Backblaze prices $175M convertible notes

Backblaze, Inc. (Nasdaq: BLZE), a cloud storage platform, announced the pricing of $175 million aggregate principal amount of 0.00% Convertible Senior Notes due 2031 in a private offering to qualified institutional buyers under Rule 144A. The offering was upsized from the initially proposed $150 million. The notes are senior, unsecured obligations that do not bear regular interest and mature on August 15, 2031. They are convertible into cash, shares of Backblaze's Class A common stock, or a combination thereof, at Backblaze's election. The initial conversion rate is 45.5705 shares per $1,000 principal amount, representing a conversion price of approximately $21.94 per share, a 30% premium over the $16.88 closing price on August 19, 2026. Backblaze granted initial purchasers an option to buy up to an additional $26.25 million of notes. The sale is expected to close on August 24, 2026. Net proceeds are estimated at approximately $167.2 million, or $192.7 million if the option is exercised in full. Backblaze intends to use about $15.2 million to pay for capped call transactions and the remainder for general corporate purposes and capital expenditures. The capped call transactions are designed to reduce potential dilution upon conversion. Meritz Securities is acting as lead bookrunner.