Akamai Technologies, Inc. has completed a private placement of $3.5 billion in aggregate principal amount of convertible senior notes. The offering consists of two separate tranches: $1.75 billion of 0.00% notes due 2030 and $1.75 billion of 0.00% notes due 2032. A portion of the proceeds was used to repurchase approximately $350 million of its common stock concurrently.
Key Details
- Offering Details: The offering includes $1.75 billion of 0.00% Convertible Senior Notes due May 15, 2030, and $1.75 billion of 0.00% Convertible Senior Notes due May 15, 2032. The total amount includes the full exercise of a $500 million option by the initial purchasers.
- Use of Proceeds: Net proceeds will fund accelerated capital expenditures for its Cloud Infrastructure Services (CIS) business, a concurrent $350.0 million repurchase of 2,476,298 common shares, and the cost of related convertible note hedge transactions.
- Conversion Terms: The 2030 notes have an initial conversion price of approximately $201.41 per share (a 42.5% premium), and the 2032 notes have a conversion price of approximately $190.81 per share (a 35.0% premium), based on the stock's closing price of $141.34 on May 19, 2026.