Cloudflare, Inc. issued $2.5 billion of 0% convertible senior notes due 2031 after initial purchasers fully exercised a $325 million additional-purchase option, expanding a deal first priced at $2.175 billion. The company said the sale should produce about $2.46 billion in net proceeds, with the notes initially convertible at about $496.94 per share, a 60% premium to the Aug. 10 closing price of $310.59, and with conversions payable in cash, shares or a mix of both. Cloudflare spent $259.5 million on capped call transactions, with an initial cap price of about $854.12 per share, to reduce potential dilution or conversion-related cash costs, while the balance may be used for working capital, capital expenditures, debt repayment and possible acquisitions or other strategic transactions. The new debt sits alongside Cloudflare's existing 0% notes due 2026 and 2030. Shares were down 3.21% at $320.21 on Friday, though the stock remained about 11.5% above its 20-day SMA of $287.12 and roughly 47% above its 200-day SMA of $217.73, leaving the broader uptrend intact as traders watch resistance at $332.22 and support at $292.54.