Akamai Upsizes $3B Convertible Note Offering, Sets 42.5% Conversion Premium
Akamai priced $1.5B of 0% convertible notes due 2030 and $1.5B due 2032, upsized from $1.3B each, raising $2.96B (or $3.45B if options exercised). The 2030 notes convert at $201.41, a 42.5% premium, and the 2032 notes at $190.81, a 35% premium; $350M will fund share buybacks at $141.34.
1. Offering Details
Akamai has privately offered $1.5 billion of 0% convertible senior notes maturing May 15, 2030 and $1.5 billion maturing May 15, 2032, upsized from $1.3 billion each. The sale to qualified institutional buyers includes options to purchase an additional $250 million of each series, with closing expected May 22 under customary conditions.
2. Conversion Terms
The 2030 notes are initially convertible at 4.9650 shares per $1,000 principal (implying $201.41 per share, a 42.5% premium to the prior close) and the 2032 notes at 5.2408 shares per $1,000 (implying $190.81, a 35.0% premium). Notes bear no regular interest and are convertible under specified conditions and at any time before maturity, with settlement in cash, stock or both.
3. Use of Proceeds
Net proceeds are estimated at $2.958 billion (or $3.452 billion if options are exercised). Approximately $203 million will fund convertible hedge costs, $350 million will repurchase shares at $141.34 each, and the remainder will accelerate cloud infrastructure capital expenditures and support general corporate purposes.