SAN FRANCISCO--(BUSINESS WIRE)--Feb. 24, 2021-- Dropbox, Inc. (Dropbox) (NASDAQ: DBX) today announced the pricing of $653,000,000 aggregate principal amount of convertible senior notes due 2026 (the 2026 Notes) and $653,000,000 aggregate principal amount of convertible senior notes due 2028 (the 2028 Notes and, together with the 2026 Notes, the Notes) in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the Act). The aggregate principal amount of the offering was increased from the previously announced offering size of $1.135 billion. Dropbox also granted the initial purchasers of the Notes a 13-day option to purchase up to an additional $65,300,000 aggregate principal amount of 2026 Notes and up to an additional $65,300,000 aggregate principal amount of 2028 Notes. The sale of the Notes to the initial purchasers is expected to settle on February 26, 2021, subject to customary closing conditions, and is expected to result in approximately $1,286 million in net proceeds to Dropbox (or approximately $1,414 million if the initial purchasers exercise their option to purchase additional notes in full) after deducting the initial purchasers discount and estimated offering expenses payable by Dropbox.

1. What commission did the investment bankers collect on the private placement and do you think it is reasonable? Explain your answer.

2. What does private placement mean?

3. Why do you think Dropbox broke up the offering into two halves? Try to come up with at least two reasons one from Dropboxs perspective and the other from the perspective of the buyers.

4. Share anything you found interesting while completing this short assignment.