Akamai Technologies completed its offerings of convertible senior notes on November 12, 2026. The company sold $1.25 billion of 1.00% Convertible Senior Notes due November 15, 2028 and $1.25 billion of 1.00% Convertible Senior Notes due November 15, 2031 in a private placement.
The 2028 notes carry an initial conversion price of approximately $112.41 per share, representing a 40.0% premium to Akamai's closing stock price of $80.29 on November 9, 2026. The 2031 notes have an initial conversion price of approximately $102.37 per share, a 27.5% premium to the same closing price.
Use of Proceeds
Akamai will allocate approximately $284.4 million toward convertible note hedge costs. The remainder will be used to repay a portion of the company's $1.15 billion 0.375% Convertible Notes due September 1, 2027, as well as to fund Cloud Infrastructure Services capital expenditure and general corporate purposes.
Terms and Structure
Both note series are senior unsecured obligations with interest payable semiannually on May 15 and November 15, beginning May 15, 2027. Goldman Sachs, J.P. Morgan Securities, BofA Securities, Citigroup Global Markets, and Morgan Stanley acted as representatives of the Initial Purchasers, which acquired the notes for resale to qualified institutional buyers under Rule 144A.
Akamai will pay cash up to the principal amount upon conversion. Any remaining conversion obligation may be settled in cash, shares, or a combination, at the company's election.
Key Dates
- May 15, 2027: First semiannual interest payment on both note series
- August 15, 2028: 2028 Notes become freely convertible
- September 1, 2027: Maturity of existing 0.375% 2027 Convertible Notes
The offering refinances a portion of Akamai's near-term convertible debt while funding investment in the company's cloud infrastructure business.
