What happened

Shares of DocuSign (NASDAQ:DOCU) were climbing today after the company announced yesterday that it was offering $500 million in convertible notes and that it was improving its balance sheet with a new revolving credit facility. 

The tech stock jumped by as much as 7.9% during trading today and was up 5.2% as of 12:07 p.m. EST.

So what 

The company issued two press releases yesterday, with the first focusing on the company's proposal to offer $500 million of convertible senior notes. DocuSign said in a statement that a "significant portion" of the net proceeds from the offering will be used to repurchase a majority of convertible senior notes that are due in 2023.  

Bar and line graphs on a blue background.

Image source: Getty Images.

The company said it will use the remainder of the proceeds "for working capital and other general corporate purposes."  

In addition to the first announcement, DocuSign also said in a separate statement that it had closed a new $500 million, five-year senior revolving credit facility, a type of loan that allows a company to draw on the funds when needed, without having to reapply for a loan. DocuSign can also draw on an additional $250 million if necessary. 

Chief financial officer Cynthia Gaylor said in the press release: "This transaction provides us with more flexibility on our balance sheet to deliver on our growth agenda. We are taking advantage of the favorable market environment to optimize our capital structure and strengthen our balance sheet."

Now what

Investors were pleased to see these moves by the company, and today's share price bump puts the stock up more than 237% over the past 12 months. Investors have likely been optimistic about the company's growth during the pandemic, and with COVID-19 still causing more lockdowns and social distancing, DocuSign's cloud-based e-signature business could continue to thrive in 2021.