Akamai Prices $3.0B 0% Convertible Senior Notes Due 2030 & 2032
Akamai Technologies, Inc. announced the pricing of a private offering of $3.0 billion in 0% convertible senior notes, consisting of $1.5 billion due 2030 and $1.5 billion due 2032. The offering was upsized from a previously announced $2.6 billion, with initial purchasers having an option for an additional $500 million. The notes feature conversion premiums of 42.5% and 35.0% respectively, based on the May 19, 2026 closing price of $141.34 per share. Akamai intends to use the estimated net proceeds of $2,958.0 million (or up to $3,451.8 million) to fund accelerated capital expenditure for its Cloud Infrastructure Services business, repurchase approximately $350 million of its common stock, and cover convertible note hedge transaction costs.
Key Highlights
- Akamai priced a private offering of $3.0 billion in 0% convertible senior notes, upsized from $2.6 billion.
- The offering includes $1.5 billion due 2030 and $1.5 billion due 2032, with an option for an additional $500 million.
- The 2030 Notes have an initial conversion price of $201.41 per share, a 42.5% premium to the closing price.
- The 2032 Notes have an initial conversion price of $190.81 per share, a 35.0% premium to the closing price.
- Net proceeds are estimated at $2,958.0 million, potentially $3,451.8 million if the option is fully exercised.
- Akamai plans to use proceeds for Cloud Infrastructure Services expansion and general corporate purposes.
- Approximately $350 million of net proceeds will be used to repurchase shares of common stock.
- Approximately $203 million will cover the cost of convertible note hedge transactions.
Price Impact
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