Akamai Technologies, Inc. announced its intent to offer a total of $2.6 billion in convertible senior notes through a private placement. The proceeds are primarily intended to fund accelerated capital expenditures for the build-out of its Cloud Infrastructure Services (CIS) business and global footprint. Concurrently, the company amended its credit agreement to provide greater financial flexibility.
Key Details
- Offering Details: The offering consists of two tranches: $1.3 billion of Convertible Senior Notes due 2030 and $1.3 billion due 2032. Initial purchasers have an option to buy an additional $200 million of each series.
- Use of Proceeds: Funds are designated for CIS capital expenditures, with approximately $350 million of the net proceeds also allocated to repurchase shares of its common stock.
- Credit Agreement Amendment: Akamai temporarily increased its maximum consolidated leverage ratio covenant to 4.75:1.00 for the fiscal quarters ending on June 30, 2026, and September 30, 2026.