Akamai Technologies Raises $1.08B Via Debt

Akamai Technologies, Inc AKAM has priced its private offering of $1.1 billion in aggregate principal amount of convertible senior notes due 2029. 

In addition, Akamai has granted the initial purchasers of the notes an option to purchase up to an additional $165 million of notes on the same terms and conditions. 

The notes will bear interest at a rate of 1.125% per year, payable semiannually in arrears on February 15 and August 15 of each year, beginning on February 15, 2024.

The sale of the notes is expected to close on August 18, 2023. The offering was upsized from the previously announced offering of $1 billion of convertible senior notes.

Akamai estimates that the net proceeds from this offering will be approximately $1.084 billion and intends to use the proceeds to repay at maturity a portion of its $1.15 billion of 0.125% Convertible Senior Notes due 2025, which will mature on May 1, 2025. It will also use a part of the proceeds to repurchase shares.

Price Action: AKAM shares closed lower by 0.81% at $103.11 on Tuesday.