Super Micro Computer Sells 75M Depositary Shares of 7.00% Preferred Stock
Super Micro Computer, Inc. completed an offering of 75,000,000 depositary shares, each representing a 1/20th interest in its 7.00% Series A Mandatory Convertible Preferred Stock. The offering closed on June 15, 2026, and included an over-allotment option for an additional 11,250,000 shares. The company also filed a Certificate of Designations, establishing the rights and preferences of the preferred stock, including a 7.00% annual dividend rate on a $1,000 liquidation preference per share, payable quarterly. This issuance modifies the rights of existing common stockholders, as common dividends and buybacks are restricted until preferred dividends are paid.
Key Highlights
- Super Micro Computer sold 75,000,000 depositary shares in an offering.
- Each depositary share represents a 1/20th interest in 7.00% Series A Mandatory Convertible Preferred Stock.
- The Preferred Stock has a liquidation preference of $1,000 per share.
- Underwriters have a 30-day option to purchase up to an additional 11,250,000 depositary shares.
- The Preferred Stock accumulates dividends at an annual rate of 7.00%.
- Dividends are payable quarterly, commencing September 1, 2026, and ending June 1, 2029.
- Common stock dividends and buybacks are restricted until preferred dividends are paid.
Price Impact
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