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This morning DDOG released news of $550 million aggregate principal amount of convertible senior notes due 2025, with an option to purchase up to an additional $82.5 million aggregate principal amount of notes.

It seems like they will be used for the purchase of capped call transactions to offset potential dilution from the offering. It goes on to say if the stock prices exceeds the capped call price then dilution would occur.

Does anybody with a better finance background know if this means the full $550mil dilution could occur at a given stock price? (I don't see a price given yet)

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