Akamai Technologies slides after announcing $2.2 billion convertible offerings
AKAM•Akamai Technologies shares fell 7.3% premarket to $77 after the company announced two proposed $1.1 billion convertible-note offerings, due in 2028 and 2031.
1. Planned convertible offerings
Akamai Technologies announced private offerings of $1.1 billion in convertible notes due November 15, 2028, and $1.1 billion due November 15, 2031. It plans to use proceeds to repay at maturity part of its $1.15 billion of outstanding 0.375% convertible notes due 2027, pay cash amounts due if those notes convert earlier, fund capital expenditures for its Cloud Infrastructure Services business, and cover costs of convertible-note hedge transactions.
2. Shares and analyst views
Akamai shares were down 7.3% premarket at $77. Through Friday's close, the stock was down about 5% year to date, while the S&P 500 Technology index had gained about 11% and the Nasdaq nearly 6%. The average rating of 25 analysts was “buy,” and the median price target was $120, down from $155.39 a month earlier, LSEG data showed.
