Akamai Technologies, Inc. announced on May 14, 2025, that it priced its private offering of $1.5 billion in aggregate principal amount of convertible senior notes due 2033. This offering was upsized from the previously announced $1.35 billion. The notes will bear interest at a rate of 0.25% per year, payable semiannually, and will mature on May 15, 2033.
The initial conversion rate for the notes is 10.7513 shares of Akamai's common stock per $1,000 principal amount, equivalent to an initial conversion price of approximately $93.01 per share. This represents a premium of approximately 20% to the $77.51 closing price of Akamai's common stock on May 14, 2025. The sale of the notes is expected to close on May 19, 2025.
Akamai estimates net proceeds of approximately $1,479.1 million from this offering. The company intends to use these proceeds to repay approximately $250 million in borrowings under its revolving credit facility, repay a portion of its $1.15 billion convertible senior notes due 2027, and repurchase approximately $300 million of its common stock from purchasers of the notes.
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