Akamai Technologies closed a $3 billion private offering of 0% convertible senior notes. The offering consists of two equal tranches maturing in 2030 and 2032. Net proceeds reach approximately $2.96 billion after expenses.
Akamai will allocate the funds toward Cloud Infrastructure Services and a seven-year, $1.8 billion AI inference contract. S&P Global Ratings downgraded Akamai’s credit rating to BBB- due to increased leverage from the debt issuance.
Akamai shares rose 1.11% to close at $147.86 on May 22. The stock recovered from a 6.2% decline triggered by the initial pricing announcement earlier in the week.