Company: TEAM
Filing Date: 2025-08-15
Form Type: 10-K
Source: 0001650372-25-000036
Chunk: 143

Company: Atlassian Corp
Filing Date: 2025-08-15
Form: 10-K
Item: Item 8
Chunk 143
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 semi-annually in arrears on May 15 and November 15 of each year, beginning on November 15, 2024.The Notes are senior unsecured obligations of the Company. The Company may redeem either series of the Notes, in whole or in part, at any time or from time to time at the applicable redemption price. Upon the occurrence of a change of control event, the Company will be required to make an offer to repurchase all outstanding notes from their holders at a price equal to 101% of their principal amount thereof, plus accrued and unpaid interest to, but not including, the date of repurchase. The indenture governing the Notes also includes covenants (including certain limited covenants restricting the Company’s ability to incur certain liens and enter into certain sale and leaseback transactions), events of default, and other customary provisions. As of June 30, 2025, the Company was in compliance with all covenants associated with the Notes.The Company incurred debt discount and issuance costs of approximately $14.3 million in connection with the Notes offering, which were allocated on a pro rata basis to the 2029 Notes and 2034 Notes. The debt discount and issuance costs are amortized on an effective interest rate method to interest expense over the contractual term of the Notes. The proceeds from this offering, net of debt discounts and issuance costs, was $985.7 million. The net proceeds were used primarily to repay the Term Loan. The carrying values of the Notes were as follows (in thousands, except percentage data):InstrumentExpected Remaining Term (years)Contractual Interest RateEffective Interest RateJune 30, 2025June 30, 20242029 Notes3.95.25 %5.55 %$500,000 $500,000 2034 Notes8.95.50 %5.71 %500,000 500,000 Unamortized debt discount and issuance costs(12,316)(14,089)Long-term debt$987,684 $985,911 As of June 30, 2025, the total estimated fair value of the Notes was approximately $1.0 billion. The estimated fair value of the Notes, which the Company deems Level 2 financial instruments, was determined based on quoted bid prices in an over-the-counter market on the last trading day of the reporting period.

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11. Commitments and ContingenciesNoncancellable Purchase ObligationsThe Company