Akamai Technologies, Inc. has completed a private placement of convertible senior notes, raising a total of $2.5 billion in aggregate principal amount. The offering consists of two series of notes: $1.25 billion in 1.00% Convertible Senior Notes due November 15, 2028, and $1.25 billion in 1.00% Convertible Senior Notes due November 15, 2031. The notes were sold to qualified institutional buyers under Rule 144A of the Securities Act of 1933.
The offering was priced on November 9, 2026, and closed on November 12, 2026. The total amount for each series includes $150.0 million issued pursuant to the initial purchasers' option to purchase additional notes of that series, which was exercised in full on November 10, 2026.
Under the terms of the indentures, the notes will bear interest at a rate of 1.00% per year, payable semiannually on May 15 and November 15. The 2028 Notes are convertible into shares of Akamai common stock at an initial conversion rate of 8.8963 shares per $1,000 principal amount, equivalent to an initial conversion price of approximately $112.41 per share. The 2031 Notes are convertible at an initial rate of 9.7685 shares per $1,000 principal amount, equivalent to an initial conversion price of approximately $102.37 per share. These prices represent premiums of approximately 40.0% and 27.5%, respectively, to the $80.29 closing price of Akamai common stock on November 9, 2026.
Akamai intends to use the net proceeds from the offering to repay a portion of its $1.15 billion outstanding 0.375% Convertible Senior Notes due 2027, fund capital expenditures for its Cloud Infrastructure Services business, and for general corporate purposes. The company also entered into convertible note hedge transactions and warrant transactions with the initial purchasers and other financial institutions to manage potential dilution and cash payment obligations associated with the notes.
