Akamai Technologies announced a $2.6 billion private offering of convertible senior notes after market close on May 18, 2026. The company intends to use the proceeds to accelerate capital expenditures for its Cloud Infrastructure Services business. This spending primarily supports a recently secured major AI contract.
The stock price declined as investors weighed concerns over shareholder dilution and rising debt levels. S&P Global Ratings downgraded Akamai’s credit rating to BBB- from BBB and issued a negative outlook.
S&P attributed the downgrade to Akamai’s projected leverage ratio increasing to nearly 3x. This increase stems from the significant capital required to fulfill the new AI agreement.