Strategy Inc (MSTR): debt financing — MicroStrategy closes $603.75M 0.875% convertible notes due 2031; proceeds used for bitcoin

Strategy Inc

Aggregate principal amount of $603.75M, including $78.75M from full exercise of initial purchasers' option.
Net proceeds of ~$592.3M used to acquire additional bitcoin.
Notes bear 0.875% interest, mature March 15, 2031; convertible at $2,327.21/share (40% premium).
Conversion rate initially 0.4297 shares per $1,000 principal; redemption allowed after March 22, 2028 if stock price condition met.
Holders can require repurchase on Sept 15, 2028 or upon a fundamental change at 100% principal plus interest.

item 1.01 item 2.03 item 3.02 item 8.01 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

Strategy Inc incurred senior notes of $603.75 million with Citigroup Global Markets Inc., as representative of the several initial purchasers at 0.875% per year maturing March 15, 2031.

Instrument: senior notes
Principal: $603.75 million
Counterparty: Citigroup Global Markets Inc., as representative of the several initial purchasers
Rate: 0.875% per year
Maturity: March 15, 2031
Event: incurrence

Exact text from the filing

buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The aggregate principal amount of the notes sold in the offering was $603.75 million, which includes $78.75 million aggregate principal amount of notes issued pursuant to an option to purchase, within a 13-day period beginning on, and including, the date on which

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

Strategy Inc entered into Convertible Note Offering with Citigroup Global Markets Inc. valued at $603.75 million aggregate principal amount of 0.875% convertible senior notes due 2031 (effective 2024-03-18).

Action: entry
Agreement: notes offering
Counterparty: Citigroup Global Markets Inc.
Value: $603.75 million aggregate principal amount of 0.875% convertible senior notes due 2031
Effective: 2024-03-18

Exact text from the filing

On March 18, 2024, MicroStrategy Incorporated (the “Company”) completed its previously announced private offering of 0.875% convertible senior notes due 2031 (the “notes”).

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

Strategy Inc filing history →

Source: SEC EDGAR

accession 0001193125-24-070793

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