GlobeNewswire·Nov 9, 2026, 9:34 PM ET

Akamai Announces Pricing of Offering of Convertible Senior Notes

AKAM

Akamai Technologies priced a private offering of $1.1 billion in 1.00% convertible senior notes due 2028 & $1.1 billion in 1.00% convertible senior notes due 2031.
Initial purchasers hold an option to buy up to an additional $150 million of each note series on the same terms.
The offering is restricted to qualified institutional buyers under Rule 144A & is expected to close on November 12, 2026.
The 2028 Notes mature on November 15, 2028, while the 2031 Notes mature on November 15, 2031, with interest payable semi-annually at 1.00%.
Conversion rates are initially 8.8963 shares per $1,000 for the 2028 Notes (approx. $112.41 price) & 9.7685 shares per $1,000 for the 2031 Notes (approx. $102.37 price).
Akamai estimates net proceeds of approximately $2,164.2 million, rising to $2,459.7 million if the over-allotment option is fully exercised.
Net proceeds are intended to repay or fund cash obligations for the 2027 Convertible Notes, fund Cloud Infrastructure Services capital expenditures, & cover general corporate purposes.
Approximately $250.3 million of proceeds will fund convertible note hedge transactions, partially offset by proceeds from warrant sales.
Akamai entered into note hedge & warrant transactions to reduce potential dilution & offset cash conversion payments, though warrants may cause dilution if stock prices rise above strike levels.
Option counterparties expect to purchase Akamai stock or enter derivatives to establish hedges, which may influence market prices & conversion values.

Company: Akamai Technologies, Inc.
Keywords: Nasdaq:AKAM, Akamai Technologies, Inc., akamai, Akamai Technologies, convertible senior notes