Business
Supermicro Announces Pricing of Private Placement of $700.0 Million of New 2.25% Convertible Senior Notes Due 2028 and Pricing of Amended Convertible Senior Notes Due 2029
SAN JOSE, Calif.--(BUSINESS WIRE)-- Super Micro Computer, Inc (NASDAQ: SMCI) (“Supermicro” or the “Company”) today announced the pricing of $700.0 million
About this update from Super Micro Computer, Inc.
[{"type":"text","content":" SAN JOSE, Calif.--(BUSINESS WIRE)--\nSuper Micro Computer, Inc (NASDAQ: SMCI) (“Supermicro” or the “Company”) today announced the pricing of $700.0 million aggregate principal amount of newly issued 2.25% Convertible Senior Notes due 2028 (the “New Convertible Notes”) pursuant to privately negotiated agreements (the “Subscription”). The Company also announced the amended pricing terms of its existing $1.725 billion aggregate principal amount of Convertible Senior Notes due 2029 (the “Existing Notes”) pursuant to privately negotiated agreements with certain holders of the Existing Notes to amend certain terms of, and obtain waivers with respect to, (together, the “Amendments”) the Existing Notes (as so amended, the “Amended Convertible Notes”). The Amendments are expected to be effective, and the Subscription is expected to close, on or about February 20, 2025, subject to customary closing conditions. The Amendments and the Subscription are cross-conditional. The Company will receive gross proceeds before expenses related to the New Convertible Notes offering of approximately $700 million and intends to use such proceeds for general corporate purposes, including to fund working capital for growth and business expansion.\n\n\nGoldman Sachs & Co. LLC and Evercore Group L.L.C. acted as both placement agents for the offering of the New Convertible Notes and financial advisors to the Company in connection with the transactions. ICR Capital LLC acted as financial advisor to the Company in connection with the transactions.\n\n\nThe New Convertible Notes\n\n\nThe New Convertible Notes will be senior, unsecured obligations of the Company and will bear interest at an annual rate of 2.25%, payable semi-annually on each January 15 and July 15, beginning on July 15, 2025. The New Convertible Notes will have an initial conversion rate of 16.3784 shares of the Company’s common stock per $1,000 principal amount of the New Convertible Notes, which is equivalent to an initial conversion price of approximately $61.06 per share of the Company’s common stock, representing an initial conversion premium of approximately 50% over the volume-weighted average price of the Company’s common stock of $40.7040 on February 12, 2025 (the “Reference Price”). The conversion rate and conversion price will be subject to adjustment upon the occurrence of certain ev...