Akamai Technologies Proposes $2.2 Billion Convertible Notes Offering

Akamai Technologies Inc. announced a proposal to offer $2.2 billion in aggregate principal amount of convertible senior notes. The offering is divided equally into two series of $1.1 billion, with maturity dates set for November 15, 2028, and November 15, 2031.

The company is targeting qualified institutional buyers for the offering and has provided purchasers the option to acquire an additional $150 million for each series. Akamai intends to use the net proceeds to fund capital expenditures for its Cloud Infrastructure Services business and to repay a portion of $1.15 billion in convertible senior notes that mature in September 2027.

To manage the potential dilution of common stock that may occur upon the conversion of these notes, the company plans to enter into convertible note hedge transactions and warrant agreements with financial institutions.