Akamai Prices $2.2 Billion Convertible Notes for Debt, Cloud Spending

Akamai Technologies, Inc. priced $2.2 billion in convertible senior notes on Nov. 9, setting interest and conversion terms for a financing intended to refinance part of its 2027 debt and fund cloud infrastructure spending.

The offering consists of $1.1 billion in notes due Nov. 15, 2028, and $1.1 billion in notes due Nov. 15, 2031. Both series carry 1% interest. Their initial conversion prices are about $112.41 per share for the 2028 notes and $102.37 for the 2031 notes.

Akamai granted initial purchasers an option to buy up to an additional $150 million of each series. The offering is expected to close Nov. 12.

After costs for related hedge and warrant transactions, Akamai intends to use remaining proceeds to repay part of its $1.15 billion in 0.375% convertible notes due Sept. 1, 2027, at maturity, or pay cash if holders convert earlier. The company also plans to fund capital expenditures for its Cloud Infrastructure Services business. Any proceeds remaining after those uses would go toward general corporate purposes.