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GlobeNewswire·

Akamai Announces Closing of $2.5 Billion Offering of Convertible Senior Notes

AKAM
  • Akamai Technologies closed a private offering of $1.25 billion in 1.00% convertible senior notes due 2028 & $1.25 billion in 1.00% convertible senior notes due 2031 to qualified institutional buyers.
  • The aggregate principal amount of each note series includes $150.0 million issued via the full exercise of the initial purchasers' over-allotment option.
  • Net proceeds from the offering totaled approximately $2,459.7 million after deducting discounts & estimated offering expenses.
  • Approximately $284.4 million of net proceeds were used to pay for convertible note hedge transactions, partially offset by proceeds from related warrant sales.
  • Akamai intends to use remaining net proceeds to repay a portion of its $1.15 billion 0.375% Convertible Senior Notes due 2027, fund capital expenditure requirements for its Cloud Infrastructure Services business, or use funds for general corporate purposes.
  • The company entered into convertible note hedge transactions to reduce potential dilution & offset cash payments upon conversion, alongside warrant transactions that may have a dilutive effect if the market price exceeds the strike price.
  • Akamai expects significant increases in EBITDA margins & operating cash flow beginning in 2027, with further improvement anticipated in 2028, to support self-funding & reduce leverage.
  • The notes & underlying shares were not registered under the Securities Act & may not be offered or sold in the United States without registration or an applicable exemption.
Company
Akamai Technologies, Inc.
Keywords
Nasdaq:AKAM, Akamai Technologies, Inc., Akamai, convertible senior notes, cloud, cybersecurity