Akamai Technologies has launched a $2.6 billion Senior Notes offering to help raise capital to expand its Cloud Infrastructure Services business.
The bond offering is split into two $1.3bn tranches: the first being zero percent convertible senior notes due in 2030, and the second zero percent convertible notes due in 2032.
– Akamai
The offering is only available to those considered to be "qualified institutional buyers." Initial purchases will also have the option to buy up to $200 million in both tranches of notes. Once converted, Akamai will either pay in cash or deliver shares of common stock, or a combination of both.
The funding will be used to support increasing capex requirements for Akamai's cloud computing business, including the expansion of the company's global footprint, and for "general corporate purposes," including repaying previously convertible note hedge transactions, and around $350m to repurchase shares of its common stock.
