Company: BL
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001666134-25-000016
Chunk: 13

Company: BLACKLINE, INC.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 13
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 transactions (the “2029 Capped Calls” and together with the 2026 Capped Calls (as defined below), the “Capped Calls”). There have been no changes to the condition of the 2029 Notes since December 31, 2024, and the 2029 Capped Calls were unchanged and still outstanding at March 31, 2025.2026 NotesAt March 31, 2025, the Company had $230.2 million aggregate principal amount of our 0.00% 2026 Notes (the “2026 Notes”) outstanding. The 2026 Notes consisted of the following (in thousands):March 31,2025December 31,2024Liability:Principal$230,196 $230,196 Unamortized debt issuance costs(817)(1,027)Net carrying amount(1)$229,379 $229,169 (1) Net carrying amount at March 31, 2025 presented within total current liabilities on the unaudited condensed consolidated balance sheets.The effective interest rate of the 2026 Notes, excluding the conversion option, was 0.37% at March 31, 2025.The Company carries the 2026 Notes at face value less unamortized debt issuance costs on the unaudited condensed consolidated balance sheets and presents the fair value for disclosure purposes only. The estimated fair value was determined based on the actual bids and offers of the 2026 Notes in an over-the-counter market on the last trading day of the period. The estimated fair value of the 2026 Notes, based on a market approach at March 31, 2025, was approximately $221.0 million, which represents a Level 2 valuation. During the quarters ended March 31, 2025 and 2024, the Company recognized interest expense related to the amortization of debt issuance costs of $0.2 million and $1.1 million, respectively.The 2026 Notes were not convertible at March 31, 2025. It is the Company’s current intent to settle conversions of the 2026 Notes through “combination settlement”, which involves repayment of the principal portion 

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in cash and any excess of the conversion value over the principal amount in shares, cash, or a combination for any further value.In connection with the offering of the 2026 Notes, the Company entered into privately-negotiated capped call transactions (the “2026 Capped Calls”). There