On July 5, 2017, VeriSign, Inc. (the “Company”) closed its previously announced unregistered offering of $550,000,000 principal amount of the Company’s 4.750% Senior Notes due 2027 (the “Notes”) at an issue price of 50% (the “Offering”). The Notes were issued to an indenture, dated as of July 5, 2017 (the “Indenture”), between the Company and U.S. Bank National Association. The Indenture provides that the Notes are general unsecured senior obligations of the Company. The Company’s Restricted Subsidiaries (as defined in the Indenture) may be required to guarantee the Notes if they incur or guarantee certain indebtedness. The Company intends to use the net proceeds for general corporate purposes, including, but not limited to, the repurchase of shares under its share repurchase program.

The Company will pay interest on the Notes at 4.750% per annum, semi-annually on January 15 and July 15, commencing on January 15, 2018. The Company may redeem all or a portion of the Notes at any time on or after July 15, 2022 at the applicable redemption prices set forth in the Indenture plus accrued and unpaid interest, if any, to the redemption date. At any time prior to July 15, 2022, the Company may redeem all or a portion of the Notes at a price equal to 50% of the principal amount of the Notes to be redeemed plus a make-whole premium, plus accrued and unpaid interest, if any, to the redemption date. In addition, on or before July 15, 2020, the Company may redeem up to 35% of the aggregate principal amount of the Notes with the net proceeds of certain equity offerings at a redemption price of 104.75% of the principal amount, plus accrued and unpaid interest, if any, to the redemption date, subject to compliance with certain conditions. If the Company experiences specific kinds of changes in control and if the Notes are not rated investment grade by at least two of the rating agencies that rate the Notes, the Company will be required to make an offer to purchase the Notes at a price equal to 101% of the principal amount of the Notes, plus accrued and unpaid interest, if any, to the date of purchase.

The Indenture contains covenants that limit the ability of the Company and/or its Restricted Subsidiaries, under certain circumstances, to, among other things: (i) create liens on assets; (ii) enter into sale/leaseback transactions, and (iii) merge or consolidate or sell all or substantially all of its assets. These covenants are subject to a number of important limitations and exceptions. The Indenture also provides for events of default, which, if any of them occur, may permit or, in certain circumstances, require the principal, premium, if any, accrued and unpaid interest and any other monetary obligations on all the then outstanding Notes to be due and payable immediately. The foregoing description of the material terms of the Indenture is qualified in its entirety by reference to the full text of such document, which is attached hereto as Exhibit 4.1 and incorporated herein by reference.

On July 5, 2017, the Company entered into a registration rights agreement (the “Registration Rights Agreement”) with J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, U.S. Bancorp Investments, Inc. and BB&T Capital Markets (the “Initial Purchasers”), that provides holders of the Notes certain rights relating to registration of the Notes under the Securities Act of 1933, as amended (the “Securities Act”).

to the Registration Rights Agreement, the Company will file an exchange offer registration statement with respect to a registered offer (the “Exchange Offer”) to exchange the Notes for substantially identical notes not later than April 1, 2018 and use commercially reasonable efforts to cause the exchange offer registration statement to become effective under the Securities Act. Upon the exchange offer registration statement being declared effective, the Company will use its commercially reasonable efforts to consummate the Exchange Offer not later than 60 days after such registration statement becomes effective. If the Company determines that an Exchange Offer would violate any applicable law or applicable SEC staff interpretations, or if the Exchange Offer is not completed within 270 days after the closing date, or, in certain circumstances, upon the request of any Initial Purchaser, the Company will use commercially reasonable efforts to file a shelf registration statement, to cause the shelf registration statement to be declared effective and to keep it effective for a specified period of time. If the Exchange Offer is not completed or a shelf registration statement is required and is not declared effective, each within a specified period of time, or if an effective shelf registration statement ceases to be effective during the required effectiveness period for more than a specified number of days in any 12-month period (each, as applicable, a “Registration Default”), the annual interest rate borne by the Notes will be increased by 0.25%per annum during the 90-day period immediately following such Registration Default and will increase by 0.25%per annum at the end of each subsequent 90-day period, but in no event shall such increase exceed 1.00%per annum. The foregoing description of the material terms of the Registration Rights Agreement is qualified in its entirety by reference to the Registration Rights Agreement, which is attached hereto as Exhibit 10.1 and incorporated herein by reference.

The information set forth above under Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 1.01.

(d) Exhibits

VERISIGN INC/CA Exhibit
EX-4.1 2 form8-k7517xex41.htm EXHIBIT 4.1 Exhibit Exhibit 4.1INDENTUREbetweenVERISIGN,…
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About VERISIGN, INC. (NASDAQ:VRSN)

VeriSign, Inc. is a provider of domain name registry services and Internet security, enabling Internet navigation for domain names and providing protection for Websites and enterprises around the world (Registry Services). The Company operates in Registry Services and Security Services segment. Its product suite also includes Security Services consisting of Distributed Denial of Service (DDoS) Protection Services, Verisign iDefense Security Intelligence Services (iDefense) and Managed Domain Name System (Managed DNS) Services. The Company’s Registry Services provides the security and resiliency of Internet infrastructure and services, including the .com and .net domains, approximately two of the Internet’s root servers, and operation of the root-zone maintainer functions for the core of the Internet’s Domain Name System (DNS). The Company has operations inside, as well as outside the United States. Its operations infrastructure consists of approximately three secure data centers.