Akamai Announces Pricing of Offering of Convertible Senior Notes

The planned financing would help address existing 2027 convertible notes and fund Cloud Infrastructure Services capital spending.

Rhea-AI Summary

Akamai Technologies (AKAM) priced a private convertible senior note offering comprising two series, with $1.1 billion in principal each. The senior unsecured notes bear 1.00% annual interest and mature on November 15, 2028 and November 15, 2031. Initial purchasers have options for an additional $150.0 million per series. Akamai expects closing on November 12, 2026 and estimates net proceeds of approximately $2,164.2 million before hedge costs.

Initial conversion prices are approximately $112.41 for the 2028 notes and $102.37 for the 2031 notes. Akamai plans to apply proceeds toward repayment or conversion payments on part of its outstanding 2027 convertible notes and Cloud Infrastructure Services capital spending. Net hedge costs are approximately $250.3 million. The hedges are expected to reduce potential conversion dilution or offset excess cash payments; separate warrants could dilute shareholders.

5 points · 1 major

MixediHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

1 major · 7 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.Estimated net proceeds of approximately $2,164.2 million would provide funding before hedge costs. 19% of market cap
• Minor point. Forward-looking: it has not happened yet and may not happen.Purchaser options could lift estimated net proceeds to approximately $2,459.7 million if exercised in full.
• Minor point. Forward-looking: it has not happened yet and may not happen.Planned proceeds use includes repayment or conversion payments on part of $1.15 billion outstanding 2027 notes.
• Minor point. Forward-looking: it has not happened yet and may not happen.Planned funding supports Cloud Infrastructure Services capital expenditure requirements.
• Minor point. Forward-looking: it has not happened yet and may not happen.Convertible note hedges are expected to reduce potential conversion dilution or offset excess cash payments.

Negative

• Major pointTwo $1.1 billion senior unsecured note series add debt at 1.00%, maturing November 15, 2028 and November 15, 2031. 9.5% of market cap
• Moderate point. Forward-looking: it has not happened yet and may not happen.Planned hedge costs, after warrant proceeds partially offset them, total approximately $250.3 million. 2.2% of market cap
• Minor point. Forward-looking: it has not happened yet and may not happen.Purchaser options permit up to an additional $150.0 million per series of debt on the same terms.
• Minor point. Forward-looking: it has not happened yet and may not happen.2028 notes could dilute holders above principal at an initial conversion price of approximately $112.41.
• Minor point. Forward-looking: it has not happened yet and may not happen.2031 notes could dilute holders above principal at an initial conversion price of approximately $102.37.

2 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.Warrants could cause additional dilution above their strike price unless conditionally settled in cash.
• Minor point. Forward-looking: it has not happened yet and may not happen.A fundamental change could require cash repurchases at 100% of principal plus accrued and unpaid interest.

News Explained

The notes’ initial conversion prices were 40.0% and 27.5% above Akamai’s November 9 closing share price.

Akamai has priced the notes, with sale expected to close on November 12, 2026 subject to customary conditions; on conversion it must pay principal in cash, but can settle any excess in cash, shares, or both, making share issuance—and dilution of existing ownership—dependent on its settlement choice.

The initial conversion-price premiums were 40.0% for the 2028 notes and 27.5% for the 2031 notes, measured against the $80.29 November 9 closing share price.

Key Figures

2028 Notes principal: $1.1 billion 2031 Notes principal: $1.1 billion Additional purchase option: $150.0 million per series +5 more

2028 Notes principal

$1.1 billion

Priced private offering; 1.00% notes due 2028

2031 Notes principal

$1.1 billion

Priced private offering; 1.00% notes due 2031

Additional purchase option

$150.0 million per series

Initial purchasers may buy additional 2028 and 2031 Notes

Interest rate

1.00% per year

Both series; payable semi-annually

Estimated net proceeds

$2,164.2 million; $2,459.7 million if both options are exercised in full

After discounts and estimated offering expenses

2028 Notes initial conversion price

Approximately $112.41 per share

40.0% premium to the Nov. 9 closing price

2031 Notes initial conversion price

Approximately $102.37 per share

27.5% premium to the Nov. 9 closing price

Outstanding 2027 Convertible Notes

$1.15 billion

A portion may be repaid at maturity and/or upon earlier conversion

Key Terms

convertible senior notes, rule 144a, convertible note hedge transactions, warrant transactions, +1 more

5 terms

convertible senior notes financial

"priced its private offering of $1.1 billion in aggregate principal amount of 1.00% convertible senior notes"

Convertible senior notes are a type of loan that a company issues to investors, which can be turned into company shares later on. They are called "senior" because they are paid back before other debts if the company runs into trouble. This allows investors to earn interest like a loan but also have the chance to own part of the company if its value rises.

rule 144a regulatory

"pursuant to Rule 144A under the Securities Act of 1933"

Rule 144A is a regulation that makes it easier for companies to sell private bonds to large investors without going through all the usual rules that apply to public sales. It matters because it helps companies raise money more quickly and privately, often attracting big investors looking for special deals.

convertible note hedge transactions financial

"Akamai entered into convertible note hedge transactions and warrant transactions"

Convertible note hedge transactions are agreements made alongside convertible debt that limit the market impact when those notes convert into shares by using separate contracts that offset or neutralize the new stock issuance (for example, arranging share sales, purchases, or option contracts). Investors care because these hedges can reduce or delay dilution and dampen price swings—think of them like insurance that limits how much a conversion can dilute existing owners or move the stock price.

warrant transactions financial

"Akamai entered into convertible note hedge transactions and warrant transactions"

Warrant transactions are the issuance, sale, transfer, exercise or cancellation of warrants — contracts that give a holder the right to buy a company’s shares at a set price for a set period. Investors care because exercising warrants can raise cash for the company but also increase the number of shares outstanding, diluting existing ownership and potentially affecting the stock price; think of warrants like gift certificates that can be turned in later for a product at a fixed cost.

anti-dilution adjustments financial

"subject to anti-dilution adjustments substantially similar to those applicable to the notes"

Anti-dilution adjustments are changes made to the ownership stakes or value of an investment to protect investors from having their shares become less valuable if the company issues new shares at a lower price. Imagine buying a piece of a pie, and then the pie is cut into more slices without increasing in size—these adjustments help ensure your slice still retains its worth. They matter to investors because they help preserve the value of their investment when the company’s share price drops.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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CAMBRIDGE, Mass., Nov. 09, 2026 (GLOBE NEWSWIRE) -- Akamai Technologies, Inc. (Nasdaq: AKAM) (“Akamai”), today announced that it has priced its private offering of $1.1 billion in aggregate principal amount of 1.00% convertible senior notes due 2028 (the “2028 Notes”) and $1.1 billion in aggregate principal amount of 1.00% convertible senior notes due 2031 (the “2031 Notes” and, together with the 2028 Notes, the “notes”). The notes will be sold only to persons reasonably believed to be “qualified institutional buyers” pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). In addition, Akamai has granted the initial purchasers for the offering an option to purchase up to an additional $150.0 million in aggregate principal amount of the 2028 Notes and an additional $150.0 million in aggregate principal amount of the 2031 Notes, in each case, on the same terms and conditions. The sale of the notes is expected to close on November 12, 2026, subject to customary closing conditions.

The notes will be senior unsecured obligations of Akamai. The 2028 Notes will mature on November 15, 2028 and the 2031 Notes will mature on November 15, 2031, in each case, unless earlier redeemed, converted or repurchased in accordance with their terms. The notes will bear interest at a rate of 1.00% per year, payable semi-annually in arrears on May 15 and November 15 of each year, beginning on May 15, 2027. The 2028 Notes will be convertible prior to the close of business on the business day immediately preceding August 15, 2028 and the 2031 Notes will be convertible prior to the close of business on the business day immediately preceding August 15, 2031, in each case, only under certain circumstances, and the notes will be convertible thereafter at any time prior to the close of business on the second scheduled trading day immediately preceding their respective maturity date regardless of these circumstances. Upon conversion, Akamai will pay cash up to the aggregate principal amount of the notes to be converted and pay or deliver, as the case may be, cash, shares of its common stock or a combination of cash and shares of common stock, at Akamai’s election, in respect of the remainder, if any, of Akamai’s conversion obligation in excess of the aggregate principal amount of the notes being converted. The conversion rate of the 2028 Notes will initially be 8.8963 shares of Akamai’s common stock per $1,000 principal amount of notes, which is equivalent to an initial conversion price of approximately $112.41 per share of Akamai’s common stock, subject to adjustments in certain events. The initial conversion price of the 2028 Notes represents a premium of approximately 40.0% to the $80.29 per share closing price of Akamai’s common stock on November 9, 2026. The conversion rate of the 2031 Notes will initially be 9.7685 shares of Akamai’s common stock per $1,000 principal amount of notes, which is equivalent to an initial conversion price of approximately $102.37 per share of Akamai’s common stock, subject to adjustments in certain events. The initial conversion price of the 2031 Notes represents a premium of approximately 27.5% to the $80.29 per share closing price of Akamai’s common stock on November 9, 2026. Akamai may, subject to certain conditions, redeem for cash all, but not less than all, of either series of notes at any time, but only if the aggregate principal amount of such series of notes that remains outstanding is less than 10% of the aggregate principal amount of the notes initially issued under the relevant indenture (including any additional notes issued pursuant to the initial purchasers’ option to purchase additional notes of the relevant series), at a redemption price equal to the principal amount of the notes of such series, plus accrued and unpaid interest, if any, to, but excluding, the redemption date.

Akamai estimates that the net proceeds from the offering will be approximately $2,164.2 million (or approximately $2,459.7 million if the initial purchasers exercise their option to purchase additional notes of each series in full), after deducting the initial purchasers’ discounts and estimated offering expenses payable by Akamai.

Subject to costs and expenses related to the convertible note hedge and warrant transactions described below, Akamai intends to use the remaining net proceeds from the offering to repay at maturity a portion of Akamai’s $1.15 billion outstanding aggregate principal amount of 0.375% Convertible Senior Notes due 2027 (the “2027 Convertible Notes”), which mature on September 1, 2027, and/or to pay cash amounts due upon any earlier conversion of the 2027 Convertible Notes, and to fund the capital expenditure requirements of its Cloud Infrastructure Services (CIS) business. In addition, Akamai intends to use any remaining net proceeds for general corporate purposes.

Akamai intends to use approximately $250.3 million of the net proceeds from the offering to pay the cost of the convertible note hedge transactions described below (after such cost is partially offset by the proceeds to Akamai from the sale of warrants pursuant to the warrant transactions described below). If the initial purchasers exercise their option to purchase additional notes, Akamai expects to sell additional warrants and use a portion of the net proceeds from the sale of such additional notes, together with the proceeds from the additional warrant transactions, to enter into additional convertible note hedge transactions with respect to the relevant series of notes as to which the option was exercised.

If Akamai undergoes a fundamental change prior to the maturity date of the notes, subject to certain conditions and limited exceptions, holders may require Akamai to repurchase for cash all or any portion of their notes at a fundamental change repurchase price equal to 100% of the principal amount of the notes to be repurchased, plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date.

In connection with the pricing of the notes, Akamai entered into convertible note hedge transactions and warrant transactions with one or more of the initial purchasers of the notes and/or their respective affiliates and other financial institutions (the “Option Counterparties”). The convertible note hedge transactions will cover, subject to anti-dilution adjustments substantially similar to those applicable to the notes, the same number of shares of Akamai’s common stock that will initially underlie the notes, including any notes purchased by the initial purchasers pursuant to their option to purchase additional notes. The convertible note hedge transactions are expected generally to reduce the potential dilution with respect to Akamai’s common stock upon any conversion of the notes and/or offset any cash payments Akamai is required to make in excess of the principal amount of converted notes, as the case may be. The warrants will cover, subject to customary anti-dilution adjustments, the same number of shares of Akamai’s common stock. The warrant transactions could separately have a dilutive effect with respect to Akamai’s common stock to the extent that the market price per share of Akamai’s common stock exceeds the strike price of the warrants, unless Akamai elects, subject to certain conditions, to settle the warrants in cash.

In connection with establishing their initial hedge of the convertible note hedge and warrant transactions, the Option Counterparties and/or their respective affiliates expect to purchase shares of Akamai’s common stock and/or enter into various derivative transactions with respect to Akamai’s common stock concurrently with or shortly after the pricing of the notes. This activity could increase (or reduce the size of any decrease in) the market price of Akamai’s common stock or the notes at that time. In addition, the Option Counterparties and/or their respective affiliates may modify their hedge positions by entering into or unwinding various derivatives with respect to Akamai’s common stock and/or purchasing or selling Akamai’s common stock or other securities of Akamai in secondary market transactions following the pricing of the notes and prior to the maturity of the notes (and (x) are likely to do so during any observation period related to a conversion of the notes or following any redemption or repurchase of the notes by Akamai in connection with any fundamental change and (y) are likely to do so following any other repurchase of the notes by Akamai to the extent Akamai elects to terminate a corresponding portion of the convertible note hedge transactions in connection with such repurchase). This activity could also cause or avoid an increase or a decrease in the market price of Akamai’s common stock or the notes, which could affect the ability of holders to convert the notes and, to the extent the activity occurs during any observation period related to a conversion of the notes, it could affect the amount and value of the consideration that holders receive upon conversion of the notes.

This press release is being issued pursuant to Rule 135c under the Securities Act and shall not constitute an offer to sell nor a solicitation of an offer to buy any of these securities (including the shares of Akamai’s common stock, if any, issuable upon conversion of the notes). Any offer of notes was and will be made only by means of a private offering memorandum. The notes and the common stock issuable upon conversion of the notes, if any, have not been and will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

The release contains information about future expectations, plans and prospects of Akamai’s management that constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995, including statements with respect to Akamai’s expectations to complete the offering of the notes, its use of proceeds from the offering and the effect of the convertible note hedge and warrant transactions. There can be no assurance that Akamai will be able to complete the notes offering on the anticipated terms, or at all. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors including, but not limited to, the terms of the notes and the offering, risks and uncertainties related to whether or not Akamai will consummate the offering, the impact of general economic, industry, market or political conditions and other factors that are discussed in Akamai’s Annual Report on Form 10-K, quarterly reports on Form 10-Q, and other documents periodically filed with the SEC.

In addition, the statements in this press release represent Akamai’s expectations and beliefs as of the date of this press release. Akamai anticipates that subsequent events and developments may cause these expectations and beliefs to change. However, while Akamai may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Akamai’s expectations or beliefs as of any date subsequent to the date of this press release.

About Akamai

Akamai is the cloud company that powers and protects an AI-driven world. Our cloud platform extends high-performance cloud computing from the core to the edge, enabling organizations to build and scale next-generation AI applications and providing comprehensive, multilayered security to safeguard enterprises against evolving cyberthreats.

Contacts:
Johanna Schmitt		Mark Stoutenberg
Media Relations		Investor Relations
Akamai Technologies		Akamai Technologies
AkamaiPR@akamai.com		mstouten@akamai.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much is Akamai raising through its convertible note offering, and when is closing expected?

Akamai priced $1.1 billion of 2028 notes and $1.1 billion of 2031 notes, with closing expected on November 12, 2026, subject to customary closing conditions. Initial purchasers may buy up to an additional $150.0 million of each series. Both series bear 1.00% annual interest.

What are the conversion prices for Akamai's 2028 and 2031 convertible notes?

The initial conversion prices are approximately $112.41 for the 2028 notes and $102.37 for the 2031 notes, subject to adjustments in certain events. These represent premiums of approximately 40.0% and 27.5%, respectively, to Akamai's $80.29 closing share price on November 9, 2026.

How will Akamai settle conversions of its new convertible notes?

Akamai will pay cash up to the principal amount of converted notes. For any conversion obligation above principal, Akamai may elect cash, common shares or a combination. Initial conversion rates are 8.8963 shares per $1,000 principal for the 2028 notes and 9.7685 shares per $1,000 principal for the 2031 notes.

When can Akamai's new convertible notes be converted?

Conversion is limited to certain circumstances before the close of business on the business day immediately preceding August 15, 2028 for the 2028 notes, or August 15, 2031 for the 2031 notes. Thereafter, conversion is available regardless of those circumstances until the close of business on the second scheduled trading day immediately preceding the respective maturity date.

When can Akamai redeem its 2028 and 2031 convertible notes?

Akamai may redeem an entire series for cash, subject to conditions, only when its outstanding principal is less than 10% of the principal initially issued under the relevant indenture, including purchaser-option notes. The redemption price is principal plus accrued and unpaid interest to, but excluding, the redemption date.