Akamai Technologies, Inc. announced the pricing of an upsized $3.0 billion private offering of Convertible Senior Notes. The offering consists of two separate $1.5 billion tranches, one due in 2030 and the other in 2032. Net proceeds are intended to fund accelerated capital expenditures for its Cloud Infrastructure Services (CIS) business, finance concurrent share repurchases, and cover the cost of related hedge transactions.
Key Details
- Offering Size: $1.5 billion of 0% Convertible Senior Notes due 2030 and $1.5 billion of 0% Convertible Senior Notes due 2032. The offering was upsized from a previously announced $2.6 billion total.
- Conversion Premiums: 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).
- Use of Proceeds: Net proceeds of approximately $2.96 billion will be used to fund the build-out of its CIS business, repurchase approximately $350 million of its common stock, and pay for related convertible note hedge transactions.
- Timeline: The sale of the notes is expected to close on May 22, 2026, subject to customary closing conditions.