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Akamai Announces Pricing of Offering of Convertible Senior Notes
CAMBRIDGE, Mass., Aug. 13, 2019 /PRNewswire/ -- Akamai Technologies, Inc. (NASDAQ: AKAM) ("Akamai"), the intelligent edge platform for securing and delivering
About this update from Akamai Technologies, Inc.
[{"type":"text","content":"CAMBRIDGE, Mass., Aug. 13, 2019 /PRNewswire/ -- Akamai Technologies, Inc. (NASDAQ: AKAM) (\"Akamai\"), the intelligent edge platform for securing and delivering digital experiences, today announced that it has priced its private offering of $1,000,000,000 in aggregate principal amount of its convertible senior notes due 2027. The notes will be sold to \"qualified institutional buyers\" pursuant to Rule 144A under the Securities Act of 1933, as amended (the \"Securities Act\"). In addition, Akamai has granted the initial purchasers of the notes an option to purchase up to an additional $150,000,000 in aggregate principal amount of notes on the same terms and conditions. The sale of the notes is expected to close on August 16, 2019, subject to customary closing conditions. \n\n \nThe notes will be senior unsecured obligations of Akamai and will mature on September 1, 2027, unless earlier repurchased or converted in accordance with their terms prior to such date. The notes will bear interest at a rate of 0.375% per year, payable semi-annually in arrears on March 1 and September 1 of each year, beginning on March 1, 2020. The notes will be convertible prior to May 1, 2027 only upon the occurrence of certain events and will be convertible thereafter at any time until the close of business on the second scheduled trading day immediately preceding the maturity date regardless of these events, in either case, into cash, shares of Akamai's common stock or a combination of cash and shares of Akamai's common stock at Akamai's option. The conversion rate will initially be 8.6073 shares of Akamai's common stock per $1,000 principal amount of notes, which is equivalent to an initial conversion price of approximately $116.18 per share of Akamai's common stock, subject to adjustments in certain events. The initial conversion price represents a premium of approximately 30.0% to the $89.37 per share closing price of Akamai's common stock on August 13, 2019. \nAkamai expects the net proceeds from this offering to be approximately $986.9 million (or approximately $1,135.0 million if the initial purchasers exercise their option to purchase additional notes in full) after payment of the initial purchasers' discounts and estimated offering expenses payable by Akamai. \nAkamai intends to use approximately $100 million of the net proceeds from this offe...