RingCentral Announces Closing of Follow On Public Offering

Business Wire

SAN MATEO, Calif.--(BUSINESS WIRE)--

RingCentral, Inc. (RNG), a leading provider of cloud business communications solutions, today announced the closing of its underwritten public offering of 7,200,000 shares of Class A common stock, including 2,000,000 shares being sold by the company and 5,200,000 shares being sold by selling stockholders. All of the shares were sold at a price to the public of $21.50 per share. RingCentral received net proceeds of approximately $39.8 million, after deducting underwriting discounts and commissions and estimated offering expenses. RingCentral will not receive any of the proceeds from the sale of the shares being sold by the selling stockholders.

RingCentral intends to use the net proceeds of this offering for working capital or other general corporate purposes, including additional marketing expenditures, the expansion of its sales organization, international expansion and further development of its solutions. RingCentral may use a portion of the net proceeds to repay in part or in full the outstanding principal and accrued interest on its term loans. In addition, RingCentral may use a portion of the proceeds for capital expenditures for expansion of its network infrastructure or for acquisitions of complementary businesses, technologies or other assets.

Goldman, Sachs & Co., J.P. Morgan Securities LLC and BofA Merrill Lynch are acting as joint book-running managers for the offering, and Raymond James & Associates, Inc., William Blair & Company, L.L.C., Oppenheimer & Co., Inc., Macquarie Capital (USA) Inc. and Northland Securities, Inc. are acting as co-managers.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission and was declared effective on March 5, 2014. The offering was made only by means of a prospectus. A copy of the final prospectus related to the offering may be obtained from Goldman, Sachs & Co., Attention: Prospectus Department, 200 West Street, New York, NY 10282, or by telephone at 1-866-471-2526, or by email at prospectus-ny@gs.com; J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by telephone at 1-866-803-9204; or BofA Merrill Lynch, 222 Broadway, New York, NY 10038, Attn: Prospectus Department, or by email at dg.prospectus_requests@baml.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Forward-Looking Statements

This press release contains “forward-looking statements”, including statements regarding RingCentral’s completion of the offering, number of securities sold and anticipated use of proceeds. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on assumptions that may prove to be incorrect, which could cause actual results to differ materially from those expected or implied by the forward-looking statements. Among the important factors that could cause actual results to differ materially from those in any forward-looking statements are: risks related to market and other general economic conditions, our ability to meet the closing conditions required for consummation of the offering and other risks detailed in the registration statement related to the offering and in filings we make with the Securities and Exchange Commission from time to time, particularly under the heading “Risk Factors.” All forward-looking statements in this press release are based on information available to RingCentral as of the date hereof, and we undertake no obligation to update these forward-looking statements.

About RingCentral

RingCentral, Inc. (RNG) is a leading provider of cloud business communications solutions. Easier to manage and more flexible than on-premise communications systems, RingCentral's cloud solution meets the needs of modern distributed and mobile workforces, while eliminating the expense of on-premise hardware and software. RingCentral is headquartered in San Mateo, California.

Contact:
Investor Relations Contact:
Bob Lawson, RingCentral
Greg Kleiner, ICR for RingCentral
650-581-9443
ir@ringcentral.com
or
Media Contact:
Evelin Goldstein, 650-516-4104
evelin.goldstein@ringcentral.com

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