PagerDuty Inc (NYSE:PD) shares are trading lower by 5% to $20.74 Tuesday morning after the company announced a proposed private placement of $350 million of convertible senior notes. 

PagerDuty may grant initial purchasers an option to buy an additional $52.5 million in notes. These notes will be senior unsecured obligations, and their terms will be determined later.

The company intends to use the proceeds for various purposes, including capped call transactions, repurchasing existing notes, buying shares of its common stock and general corporate needs, possibly including acquisitions.

According to data from Benzinga Pro, PagerDuty has a 52-week high of $35.33 and a 52-week low of $19.51.