TechFlow news, on September 18, according to official announcements, MicroStrategy has priced the offering of $875 million in 0.625% convertible senior notes, an increase from the previously announced $700 million. The company also granted initial purchasers an option to buy up to an additional $135 million in notes within 13 days. The offering is expected to close on September 19.
The new notes will mature on September 15, 2028, with an annual interest rate of 0.625%, paid semiannually. The notes are convertible into cash, shares of MicroStrategy’s Class A common stock, or a combination thereof. The initial conversion price is approximately $183.19 per share, representing a 40% premium over the stock’s volume-weighted average price on September 17. MicroStrategy estimates net proceeds of approximately $864.1 million from the offering, or up to $997.4 million if the initial purchasers fully exercise their option to purchase additional notes. The company intends to use the funds to redeem all of its $500 million in 6.125% senior secured notes, with the remainder allocated toward additional bitcoin purchases and general corporate purposes.
Previous report, MicroStrategy planned to privately place $700 million in convertible senior notes.
