AKAMAI TECHNOLOGIES INC (AKAM): debt financing — Akamai issues $1.1B of 1.125% convertible notes due 2029, buys back $75M of stock

AKAMAI TECHNOLOGIES INC

Offered $1.1B aggregate principal of 1.125% Convertible Senior Notes due Feb 15, 2029; initial purchasers have option for additional $165M.
Initial conversion price ~$126.31 per share (22.5% premium over $103.11 closing price on Aug 15, 2023).
Used ~$75M of net proceeds to repurchase 727,379 shares at $103.11 per share.
Used ~$127.3M for convertible note hedge transactions (cost partially offset by warrant sale proceeds).
Remaining net proceeds to repay 0.125% 2025 Convertible Notes ($1.15B outstanding) at maturity or upon conversion.

item 1.01 item 8.01 item 2.03 item 3.02 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

AKAMAI TECHNOLOGIES INC incurred convertible notes of $1,100,000,000 in aggregate principal amount with U.S. Bank Trust Company, National Association at 1.125% per year maturing February 15, 2029.

Instrument: convertible notes
Principal: $1,100,000,000 in aggregate principal amount
Counterparty: U.S. Bank Trust Company, National Association
Rate: 1.125% per year
Maturity: February 15, 2029
Event: incurrence

Exact text from the filing

completed its previously announced offering of $1,100,000,000 in aggregate principal amount of its 1.125% Convertible Senior Notes due February 15, 2029

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.99

AKAMAI TECHNOLOGIES INC entered into 1.125% Convertible Senior Notes due February 15, 2029 with Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and BofA Securities, Inc. valued at $1,100,000,000 aggregate principal amount of 1.125% Convertible Senior Notes due February 15, 2029 (effective 2023-08-18).

Action: entry
Agreement: notes offering
Counterparty: Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and BofA Securities, Inc.
Value: $1,100,000,000 aggregate principal amount of 1.125% Convertible Senior Notes due February 15, 2029
Effective: 2023-08-18

Exact text from the filing

On August 18, 2023, Akamai Technologies, Inc. (“Akamai”) completed its previously announced offering of $1,100,000,000 in aggregate principal amount of its 1.125% Convertible Senior Notes due February 15, 2029 (the “Notes”).

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10 debt financings filed in the last 30 days. Browse all debt financings →

AKAMAI TECHNOLOGIES INC filing history →

Source: SEC EDGAR

accession 0001193125-23-215943

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