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Akamai Announces Pricing of Upsized Offering of Convertible Senior Notes
CAMBRIDGE, Mass., May 14, 2025 /PRNewswire/ -- Akamai Technologies, Inc. (NASDAQ: AKAM) ("Akamai"), the cybersecurity and cloud computing company that powers
About this update from Akamai Technologies, Inc.
[{"type":"text","content":"CAMBRIDGE, Mass., May 14, 2025 /PRNewswire/ -- Akamai Technologies, Inc. (NASDAQ: AKAM) (\"Akamai\"), the cybersecurity and cloud computing company that powers and protects business online, today announced that it has priced its private offering of $1.5 billion in aggregate principal amount of convertible senior notes due 2033. The notes will be sold only to persons reasonably believed to be \"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 $225.0 million in aggregate principal amount of notes on the same terms and conditions. The sale of the notes is expected to close on May 19, 2025, subject to customary closing conditions. The offering was upsized from the previously announced offering of $1.35 billion aggregate principal amount of convertible senior notes.\n\n \n \n \n \n \n \n\n \nThe notes will be senior unsecured obligations of Akamai and will mature on May 15, 2033, unless earlier converted or repurchased in accordance with their terms. The notes will bear interest at a rate of 0.25% per year, payable semiannually in arrears on May 15 and November 15 of each year, beginning on November 15, 2025. The notes will be convertible prior to the close of business on the business day immediately preceding January 15, 2033 only under certain circumstances and will be convertible thereafter at any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date regardless of these circumstances. Upon conversion, Akamai will pay cash up to the aggregate principal amount of the notes to be converted and pay or deliver, as the case may be, cash, shares of its common stock or a combination of cash and shares of common stock, at Akamai's election, in respect of the remainder, if any, of Akamai's conversion obligation in excess of the aggregate principal amount of the notes being converted. The conversion rate will initially be 10.7513 shares of Akamai's common stock per $1,000 principal amount of notes, which is equivalent to an initial conversion price of approximately $93.01 per share of Akamai's common stock, subject to adjustments in certain events. The initial conversion price represents a premium of ...