Akamai Announces Pricing of Upsized Offering of Convertible Senior Notes
Akamai Technologies (NASDAQ: AKAM) has priced an upsized offering of $1.5 billion convertible senior notes due 2033, with an additional option for purchasers to buy up to $225 million more. The notes will bear interest at 0.25% annually and are convertible at an initial price of $93.01 per share, representing a 20% premium over the closing price of $77.51.
The company expects net proceeds of approximately $1.48 billion (or $1.70 billion if the additional option is exercised). The funds will be used to repay $250 million in credit facility borrowings, handle the 2027 convertible notes, fund $239.1 million in convertible note hedge transactions, and repurchase approximately $300 million of common stock from note purchasers at $77.51 per share.
Akamai Technologies (NASDAQ: AKAM) ha fissato il prezzo di un'offerta aumentata di 1,5 miliardi di dollari in obbligazioni senior convertibili con scadenza nel 2033, con un'opzione aggiuntiva per gli acquirenti di acquistare fino a 225 milioni di dollari in più. Le obbligazioni avranno un interesse annuo dello 0,25% e saranno convertibili a un prezzo iniziale di 93,01 dollari per azione, rappresentando un premio del 20% rispetto al prezzo di chiusura di 77,51 dollari.
L'azienda prevede un ricavo netto di circa 1,48 miliardi di dollari (o 1,70 miliardi se l'opzione aggiuntiva verrà esercitata). I fondi saranno utilizzati per rimborsare 250 milioni di dollari di finanziamenti da linea di credito, gestire le obbligazioni convertibili del 2027, finanziare operazioni di copertura di obbligazioni convertibili per 239,1 milioni di dollari e riacquistare circa 300 milioni di dollari di azioni ordinarie dagli acquirenti delle obbligazioni al prezzo di 77,51 dollari per azione.
Akamai Technologies (NASDAQ: AKAM) ha fijado el precio de una oferta ampliada de 1.500 millones de dólares en bonos senior convertibles con vencimiento en 2033, con una opción adicional para que los compradores adquieran hasta 225 millones de dólares más. Los bonos devengarán un interés anual del 0,25% y serán convertibles a un precio inicial de 93,01 dólares por acción, lo que representa una prima del 20% sobre el precio de cierre de 77,51 dólares.
La compañía espera obtener ingresos netos de aproximadamente 1.480 millones de dólares (o 1.700 millones si se ejerce la opción adicional). Los fondos se utilizarán para reembolsar 250 millones de dólares de préstamos de líneas de crédito, gestionar los bonos convertibles de 2027, financiar transacciones de cobertura de bonos convertibles por 239,1 millones de dólares y recomprar aproximadamente 300 millones de dólares en acciones ordinarias de los compradores de bonos a 77,51 dólares por acción.
Akamai Technologies (NASDAQ: AKAM)는 2033년 만기인 15억 달러 규모의 상향 조정된 전환사채를 발행하며, 구매자들이 추가로 최대 2억 2,500만 달러를 매입할 수 있는 옵션도 제공합니다. 이 채권은 연간 0.25%의 이자를 지급하며, 초기 전환 가격은 주당 93.01달러로, 종가 77.51달러 대비 20%의 프리미엄을 나타냅니다.
회사는 순수익이 약 14억 8천만 달러(추가 옵션 행사 시 17억 달러)에 이를 것으로 예상합니다. 이 자금은 2억 5천만 달러의 신용 대출 상환, 2027년 전환사채 관리, 2억 3,910만 달러 규모의 전환사채 헤지 거래 자금 조달, 그리고 채권 구매자로부터 주당 77.51달러에 약 3억 달러 상당의 보통주를 재매입하는 데 사용될 예정입니다.
Akamai Technologies (NASDAQ : AKAM) a fixé le prix d'une émission majorée de 1,5 milliard de dollars d'obligations senior convertibles arrivant à échéance en 2033, avec une option supplémentaire permettant aux acheteurs d'acquérir jusqu'à 225 millions de dollars supplémentaires. Les obligations porteront un intérêt annuel de 0,25% et sont convertibles à un prix initial de 93,01 dollars par action, représentant une prime de 20 % par rapport au cours de clôture de 77,51 dollars.
La société prévoit un produit net d'environ 1,48 milliard de dollars (ou 1,70 milliard si l'option supplémentaire est exercée). Les fonds seront utilisés pour rembourser 250 millions de dollars d'emprunts sur facilité de crédit, gérer les obligations convertibles de 2027, financer des opérations de couverture d'obligations convertibles pour 239,1 millions de dollars et racheter environ 300 millions de dollars d'actions ordinaires auprès des détenteurs d'obligations au prix de 77,51 dollars par action.
Akamai Technologies (NASDAQ: AKAM) hat ein aufgestocktes Angebot von 1,5 Milliarden US-Dollar an wandelbaren Senior Notes mit Fälligkeit 2033 bepreist, mit einer zusätzlichen Option für Käufer, bis zu 225 Millionen US-Dollar mehr zu erwerben. Die Notes tragen einen jährlichen Zinssatz von 0,25% und sind zu einem anfänglichen Umwandlungspreis von 93,01 US-Dollar pro Aktie wandelbar, was einer Prämie von 20 % gegenüber dem Schlusskurs von 77,51 US-Dollar entspricht.
Das Unternehmen erwartet Nettoerlöse von etwa 1,48 Milliarden US-Dollar (bzw. 1,70 Milliarden US-Dollar bei Ausübung der zusätzlichen Option). Die Mittel werden verwendet, um 250 Millionen US-Dollar an Kreditfazilitäten zurückzuzahlen, die Wandelanleihen von 2027 zu bedienen, 239,1 Millionen US-Dollar in Absicherungsgeschäfte für Wandelanleihen zu investieren und etwa 300 Millionen US-Dollar an Stammaktien von Anleihegläubigern zum Preis von 77,51 US-Dollar pro Aktie zurückzukaufen.
- Successful upsizing of the offering from $1.35B to $1.5B indicates strong investor interest
- Strategic debt refinancing helps manage upcoming maturities and extends debt timeline to 2033
- Convertible note hedge transactions will help reduce potential dilution for existing shareholders
- $300M share repurchase program demonstrates commitment to returning value to shareholders
- Additional debt could increase the company's financial leverage
- Potential dilution for shareholders if stock price exceeds warrant strike price
- 0.25% interest rate, while low, adds to ongoing financial obligations
Insights
Akamai's $1.5B convertible note offering strengthens balance sheet while strategic share repurchases and hedging minimize dilution impact.
Akamai has successfully upsized its convertible senior notes offering to
The conversion price of
What's particularly strategic is how Akamai is deploying the proceeds:
Akamai has implemented sophisticated financial engineering through convertible note hedge transactions (
The optional repurchase feature in 2031 and fundamental change protection at
The notes will be senior unsecured obligations of Akamai and will mature on May 15, 2033, unless earlier converted or repurchased in accordance with their terms. The notes will bear interest at a rate of
Akamai estimates that the net proceeds from this offering will be approximately
Subject to costs and expenses related to the convertible note hedge and warrant transactions and share repurchases described below, Akamai intends to use the remaining net proceeds from the offering to repay approximately
Akamai intends to use
Akamai also intends to use approximately
Holders may require Akamai to repurchase for cash all or any portion of their notes on May 15, 2031 (the "optional repurchase date"), if the last reported sale price of Akamai's common stock on the trading day immediately preceding the business day immediately preceding the optional repurchase date is less than the conversion price, at an optional repurchase price equal to
In connection with the pricing of the notes, Akamai entered into convertible note hedge transactions and warrant transactions with 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 conversion of the notes and/or to 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 are likely to do so during any observation period related to a conversion of the notes or following any repurchase of the notes by Akamai). 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 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 concurrent stock repurchase and 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 cybersecurity and cloud computing company that powers and protects business online. Our market-leading security solutions, superior threat intelligence, and global operations team provide defense-in-depth to safeguard enterprise data and applications everywhere. Akamai's full-stack cloud computing solutions deliver performance and affordability on the world's most distributed platform. Global enterprises trust Akamai to provide the industry-leading reliability, scale, and expertise they need to grow their business with confidence.
Contacts: | ||
Christine Simeone | Mark Stoutenberg | |
Media Relations | Investor Relations | |
Akamai Technologies | Akamai Technologies | |
AkamaiPR@akamai.com | mstouten@akamai.com | |
View original content to download multimedia:https://www.prnewswire.com/news-releases/akamai-announces-pricing-of-upsized-offering-of-convertible-senior-notes-302456038.html
SOURCE Akamai Technologies, Inc.
FAQ
What is the size and purpose of Akamai's (AKAM) convertible notes offering?
What is the conversion price for Akamai's (AKAM) 2033 convertible notes?
How much will Akamai (AKAM) spend on share repurchases from this offering?
What is the interest rate on Akamai's (AKAM) 2033 convertible notes?
When can holders convert Akamai's (AKAM) 2033 notes?
