Akamai Announces Pricing of Senior Notes Worth $1 Billion

Akamai Technologies, Inc. AKAM recently announced the pricing of $1 billion aggregate principal amount of convertible unsecured senior notes due 2027. The offering is slated to close on Aug 16, 2019, which is subject to customary conditions. The company has also provided an option to initial buyers to procure up to an additional $150 million of senior notes. Consequently, Akamai will be raising $1.15 billion in total with the senior note offerings. We believe these notes will provide financial flexibility to the company and fuel long-term growth. The notes will be privately offered to institutional buyers qualifying under Rule 144A of the Securities Act of 1933, as amended. Once placed, the notes will be an unsecured senior liability of Akamai, interest for which will be paid at 0.375% semiannually. Notably, interest will be paid in arrears as on Mar 1 and Sep 1 of every year, with commencement of interest payments on Mar 1, 2020.