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Akamai Announces Proposed Offering of Convertible Senior Notes
CAMBRIDGE, Mass., May 13, 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 13, 2025 /PRNewswire/ -- Akamai Technologies, Inc. (NASDAQ: AKAM) (\"Akamai\"), the cybersecurity and cloud computing company that powers and protects business online, today announced that it proposes to offer, subject to market factors and other conditions, $1.35 billion in aggregate principal amount of convertible senior notes due 2033. The notes are to 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 will grant the initial purchasers of the notes an option to purchase up to an additional $202.5 million in aggregate principal amount of notes on the same terms and conditions. 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 Akamai's common stock or a combination of cash and shares of common stock, at Akamai's election, in respect of the remainder, if any, of its conversion obligation in excess of the aggregate principal amount of the notes being converted. Interest on the notes will be payable semi-annually in arrears on May 15 and November 15 of each year, beginning on November 15, 2025. The notes will mature on May 15, 2033, unless earlier repurchased or converted in accordance with their terms prior to such date. The interest rate, initial conversion rate, offering price and other terms will be determined at the time of pricing the offering. The notes will be senior unsecured obligations of Akamai.\n\n \n \n \n \n \n \n\n \nSubject to costs and expenses related to the convertible note hedge and warrant transactions and share repurchases described below, Akamai intends to use the remaining net proceeds from the offering to repay approximately $250.0 million in borrowings outstanding under its five-year senior unsecured revolving credit facility and repay at maturity a portion of its $1.15 billion outstanding aggregate principal amount of 0.375% Convertible Senior Notes due 2027, which mature on September 1, 2027, and/or to pay cash amounts due upon any earlier conversion thereof.\nAkamai intends to use a portion of the net proceeds from this offering to pay the cost of the convertible note hedge transactions described below (after such cost is parti...