Akamai Announces Proposed Offering of Convertible Senior Notes
12/02/2014
Akamai Contacts Jeff Young
Media Relations
617-444-3913
jyoung@akamai.com
or
Tom Barth
Investor Relations
617-274-7130
tbarth@akamai.com
CAMBRIDGE, MA. February 12, 2014 Akamai Technologies, Inc. (NASDAQ: AKAM) ( Akamai ) today announced that it proposes to offer, subject to market factors and other conditions, $500 million aggregate principal amount of its convertible senior notes due 2019. The notes are to be offered and sold to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. In addition, Akamai will grant the initial purchasers an option to purchase up to an additional $75 million principal amount of notes on the same terms and conditions. Upon conversion of the notes, holders of the notes will receive cash, shares of Akamai's common stock or a combination of cash and shares of Akamai's common stock at Akamai's option. Interest on the notes will be payable semi-annually in arrears on February 15 and August 15 of each year, beginning on August 15, 2014. The notes will mature on February 15, 2019, unless earlier repurchased or converted in accordance with their terms prior to such date. The interest rate, initial conversion rate, offering price and other terms will be determined at the time of pricing the offering. The notes will be senior unsecured obligations of Akamai.
Akamai intends to use a portion of the proceeds to pay the cost of the convertible note hedge transactions described below (after such cost is partially offset by the proceeds from the sale of warrants pursuant to the warrant transactions described below). If the initial purchasers exercise their option to purchase the additional notes, Akamai expects to sell additional warrants to one or more of the initial purchasers of the notes or their respective affiliates or other financial institutions (the Option Counterparties) and use a portion of the proceeds from the sale of the additional notes, together with the proceeds from the additional warrant transactions, to enter into additional convertible note hedge transactions with the Option Counterparties.
Akamai may use approximately $60 million of the net proceeds from this offering to repurchase shares of its common stock from purchasers of notes in the offering in privately negotiated transactions effected through one or more of the initial purchasers or its affiliates as Akamais agent. Akamai expects the purchase price per share in such transactions to equal the closing price per share of Akamais common stock on the date of pricing of the offering. The amount of Akamais common stock that Akamai actually repurchases may be more or less than $60 million. Akamai intends to use the remaining net proceeds of the offering for working capital and general corporate purposes, including potential acquisitions and other strategic transactions. Repurchases of common stock from purchasers of notes in the offering, as well as any additional repurchases of common stock by Akamai, could increase, or prevent a decline in, the market price of Akamais common stock or the notes.
In connection with the pricing of the notes, Akamai expects to enter into convertible note hedge transactions and warrant transactions with the Option Counterparties. The convertible note hedge transactions will cover, subject to anti-dilution adjustments substantially similar to those applicable to the notes, the same number of shares of common stock that will initially underlie the notes and are expected generally to reduce the potential dilution with respect to Akamais common stock upon conversion of the notes and/or to offset any cash payments Akamai is required to make in excess of the principal amount of converted notes, as the case may be. The warrants will cover, subject to customary anti-dilution adjustments, the same number of shares of common stock. The warrant transactions could separately have a dilutive effect with respect to Akamais common stock to the extent that the market price per share of Akamais common stock exceeds the strike price of the warrants, unless Akamai elects, subject to certain conditions, to settle the warrants in cash.
In connection with establishing their initial hedge of the convertible note hedge and warrant transactions, the Option Counterparties or their respective affiliates expect to purchase shares of Akamai common stock and/or enter into various derivative transactions with respect to Akamai common stock concurrently with or shortly after the pricing of the notes. This activity could increase (or reduce the size of any decrease in) the market price of Akamai common stock or the notes at that time. In addition, the Option Counterparties or their respective affiliates may modify their hedge positions (and are likely to do so during any observation period related to a conversion of notes or following any repurchase of notes by Akamai on any fundamental change repurchase date or otherwise) by entering into or unwinding various derivatives with respect to Akamais common stock and/or purchasing or selling common stock or other securities of Akamai in secondary market transactions following the pricing of the notes and prior to the maturity of the notes. This activity could also affect the then-prevailing market price of Akamais common stock or the notes, which could affect the ability of holders to convert the notes and the amount and value of the consideration that holders receive upon conversion of the notes.
Morgan Stanley is acting as sole book-running manager for the proposed offering.
This press release is neither an offer to sell nor a solicitation of an offer to buy any of these securities (including the shares of Akamais common stock, if any, issuable upon conversion of the notes). Any offer of
LINK: | http://uk.akamai.com/html/about/press/releases/2014/press_021214.html... |
See more stories from akami |
Most recent headlines
04/08/2024
Dalet Appoints Santiago Solanas as CEO to Lead Next Era of Growth and Innovation
Dalet, a leading technology and service provider for media-rich organizations, is excited to announce Santiago Solanas as its new Chief Executive Officer (CEO)....
03/06/2024
Dalet and Veritone Reach Agreement to Distribute, Transact and Monetize Media Archives
Dalet, a leading technology and service provider for media-rich organizations, a...
01/05/2024
Comcast: More Than Half of Viewers Frustrated About Finding Content
NEW YORK Just over half of U.S. viewers are frustrated over their ability to be able to find content to watch on TV according to Comcast....
01/05/2024
Bally RSNs Go Dark On Comcast Systems
Bally Sports Regional Networks were taken off Comcast's systems on April 30 when their existing distribution agreement expired and Diamond Sports Group was ...
01/05/2024
NXTGENbps powers Molinare's Notorious DIT
NXTGENbps battery solutions are designed to replace diesel generators and offer silent, emission-free power for various applications in film, TV, outside broadc...
01/05/2024
Elodie Ichter Joins Light Iron as Senior Colorist
Light Iron, the post-production creative-services division of Panavision, is excited to announce that lodie Ichter has joined the company's artist roster a...
01/05/2024
CJP presents live mo-cap demos at MPTS
CJP Broadcast Service Solutions, systems integration, production and content digitisation specialist, will feature live motion capture demonstrations at the 202...
01/05/2024
Media Links Partners with Sunteq for Representation in S...
Media Links, manufacturer and pioneer in Media over IP transport technology, has partnered with Sunteq spol s.r.o., a leading reseller located in Slovakia to st...
01/05/2024
Dot Group Showcases Enhanced Data Management and Sustaina...
Dot Group, a leader in cutting-edge data management solutions and the premier European reseller of critical Broadcast supporting IBM technologies, will demonstr...
01/05/2024
Glensound shows the latest in IP audio at MPTS
Glensound, industry leader in high quality audio systems, is showcasing the latest additions to its extensive portfolio of networked audio products at MPTS. Aud...
01/05/2024
Hitomi Broadcast to demonstrate ST2110 MatchBox at MPTS
Hitomi Broadcast, a leader in audio/video alignment and latency solutions, will be demonstrating advancements in SMPTE ST2110 workflows ensuring broadcasters ha...
01/05/2024
Leading UK vendors join in the CABSAT 30th anniversary ce...
Taking a leading role in the 30th anniversary CABSAT exposition (Dubai World Trade Centre, 21 23 May), the GREAT Britain and Northern Ireland pavilion will fe...
01/05/2024
NXTGENbps Powers Notorious DITs Green Energy Initiative w...
NXTGENbps, a pioneer in green energy solutions, proudly announces its partnership with Notorious DIT, a leading provider of digital imaging technology services ...
01/05/2024
Videosys Broadcast Brings Pan and Tilt To Coverage Of The...
As Cambridge celebrated its double win over Oxford in the 2024 Boat Race, behind the scenes celebrations were also taking place at Videosys Broadcast to mark th...
01/05/2024
Live After 5' summer concert series returns to downtown Raleigh
A popular - and free - summer concert series is coming back to downtown Raleigh! WRAL is proudly partnering with Downtown Raleigh Alliance for its Live After ...
01/05/2024
Cadent Launches Performance TV To Boost Omnichannel Ad Results
Cadent said it launched Performance TV, designed to increase the effectiveness of campaign by combining the reach of traditional linear TV with the targeting of...
01/05/2024
Eric Johnson, KOMO Seattle Anchor, Sets Retirement
Eric Johnson, anchor at KOMO Seattle, will retire as of June 6. Johnson anchors the 5 and 6 p.m. weekday newscasts and writes/produces/hosts Eric's Heroes,...
01/05/2024
T-Mobile Dials Deeper Into Ad Business With Retail Network (NewFronts)
T-Mobile said it is expanding its advertising business, creating an in-store retail media network and adding Plex, the video streaming platform for its footprin...
01/05/2024
Samsung Ads Expands AI Tools To Target Streaming Viewers (NewFronts)
Samsung Ads said it was introducing new opportunities for advertisers to use data about its viewers to target viewers across the full marketing funnel at its Ne...
01/05/2024
Samsung TV Plus Swings for the Fences With Streaming Sports Channels (NewFronts)
Samsung's ad-supported streaming platform Samsung TV Plus is putting more sports in its lineup with free channels about baseball, golf, hockey, auto racing ...
01/05/2024
Dan Rather Documentary Offers Open-Book' Look at Newsman
Rather, a documentary about famed newsman Dan Rather, premieres on Netflix May 1. The film looks at his rise to prominence in TV news, including his work coveri...
01/05/2024
Ken Wayne, KRON San Francisco Anchor, Retires Next Month
Ken Wayne, evening anchor at KRON San Francisco, is retiring after 33 years in Bay Area television. He was born in Marin County, started his journalism career a...
01/05/2024
Jeff Blaszak Promoted To Senior VP at ShowSeeker
ShowSeeker, the company behind the Pilot cloud-based order management system, said it promoted Jeff Blaszak to senior VP of business operations and strategy....
01/05/2024
Great American Media Picks VideoAmp As Ad Currency
Great American Media said it reached an agreement with VideoAmp that will enable clients to use VideoAmp's ad buying measurement and data capabilities when ...
01/05/2024
NXTGENbps powers Molinaire's Notorious DIT
NXTGENbps battery solutions are designed to replace diesel generators and offer silent, emission-free power for various applications in film, TV, outside broadc...
01/05/2024
Amazon CEO: AWS has multi-billion dollar revenue run rate in AI already
Sales rose to $25bn during the first three months of 2024, up 17 per cent year-on-year By Matthew Corrigan Published: May 1, 2024 Sales rose to $25bn duri...
01/05/2024
Roku to Offer NBC Olympics Zone
NEW YORK NBCUniversal and Roku are teaming up to offer the NBC Olympic Zone on Roku, a new destination on the Roku Home Screen Menu. The dedicated channel wil...
01/05/2024
U.K.'s Freely Officially Launches
Freely the new streaming service backed by Britain's leading broadcasters BBC, ITV, Channel 4 and Channel 5 is now available through the next generation of ...
01/05/2024
Study: FAST Channel Growth Accelerates
NEW YORK A new report on free, ad-supported streaming channels indicates that their growth continues to accelerate, with the number of channels hours views and ...
01/05/2024
VuWall Unveils New Capabilities For VuStream 150 Video Encoder
MONTREAL VuWall has enhanced its VuStream 150 H.264 video encoder with new features and capabilities, including support for HDMI signals at resolutions up to 38...
01/05/2024
Samsung TV Plus Announces New High-Profile FAST Channels for Sports
NEW YORK At the IAB NewFronts 2024, Samsung Ads announced a new lineup of premium sports, music, family and entertainment content on its leading FAST service Sa...
01/05/2024
WAPA TV Celebrates 70th Anniversary As #1 Station in Puerto Rico
SAN JUAN, PUERTO RICO WAPA TV has announced that it will be celebrating its 70th anniversary on May 1 as the number 1 broadcasters on the island....
01/05/2024
Diamond Sports Group Renews Its Distribution Deal with Cox
SOUTHPORT, Conn. & ATLANTA Diamond Sports Group and Cox Communications have reached a multi-year renewal of their distribution agreement for the continued carri...
01/05/2024
Warner Bros. Discovery Networks Dropped by Fubo
As the NBA playoffs heat up on TNT, Warner Bros. Discovery and FuboTV have been unable to reach a new distribution deal. That impasse forced the vMVPD to drop T...
01/05/2024
Time for NAB Reality Check
Time for NAB Reality Check Andy Marken April 30, 2024 0 Comments Above image source - Allegiant, Summit Entertainment Great leaders don't seek...
01/05/2024
Dream Street Productions Switches Live Corporate Events with ATEM Television Studio HD8 ISO
Dream Street Productions Switches Live Corporate Events with ATEM Television Stu...
01/05/2024
lodie Ichter Joins Light Iron as Senior Colorist
lodie Ichter Joins Light Iron as Senior Colorist Brie Clayton April 30, 2024 0 Comments Acclaimed colorist brings global expertise on high-profile pro...
01/05/2024
House of Zwide 3 Teasers - May 2024
House of Zwide 3 Teasers - May 2024This month is going to be intense in House of Zwide. Don't plan to miss any episode. Episode airs every weekday from 19:0...
01/05/2024
Skeem Saam Teasers - May 2024
Skeem Saam Teasers - May 2024Are you ready for another Skeem Saam rollercoaster ride this month? Skeem Saam airs on SABC1 Mondays to Fridays at 19h30. by Adam...
01/05/2024
Smoke and Mirrors Teasers - May 2024
Smoke and Mirrors Teasers - May 2024What an entertaining month we have in store. Smoke and Mirrors episodes airs on e.tv from Mondays to Fridays at 21h00. by ...
01/05/2024
Tonight on Smoke and Mirrors: Lulu navigates the complexities of her relationship with The General
Tonight on Smoke and Mirrors: Lulu navigates the complexities of her relationshi...
01/05/2024
AI Takes a Bow: Interactive GLaDOS Robot Among 9 Winners in Hackster.io Challenge
YouTube robotics influencer Dave Niewinski has developed robots for everything f...
01/05/2024
Skeem Saam: Tuesday's episode, 30 April 2024 [video]
Skeem Saam: Tuesday's episode, 30 April 2024 [video]Missed an episode of Skeem Saam? No problem! Watch the latest episode of your favourite South African so...
01/05/2024
Scandal soapie teasers: What's happening this May 2024?
Scandal soapie teasers: What's happening this May 2024?This month is going to be intense in Scandal. Scandal! airs on e.tv Mondays to Fridays at 19h30. Don&...
01/05/2024
The Dawn Chorus 2024: Sunday 5th May from midnight to 07:00
The Dawn Chorus 2024 Sunday 5th May from midnight to 07:00 on RT Radio 1 and RT Lyric FM & BBC Radio Wales Love nature, love the Dawn Chorus! Listen to th...
01/05/2024
Say It Again: ChatRTX Adds New AI Models, Features in Latest Update
Editor's note: This post is part of the AI Decoded series, which demystifies AI by making the technology more accessible, and which showcases new hardware, ...
30/04/2024
The Anchor of Our Work at the Native Lab: A Dispatch from Adam Piron
By Adam Piron In anticipation of this edition of the Indigenous Program's Native Lab, it actually dawned on me that this will be our lab's tenth year i...
30/04/2024
Launch of SBS South Asian channel and SBS Spice, a new English language offering for younger South Asian Australians
Launch of SBS South Asian channel and SBS Spice, a new English language offering...
30/04/2024
lodie Ichter Joins Light Iron as Senior Colorist
LOS ANGELES (April 30, 2024) Light Iron, the post-production creative-services division of Panavision, is excited to announce that lodie Ichter has joined th...
30/04/2024
Breadth of Support
Now streaming on Netflix, Good Grief marks the feature-film directorial debut of Daniel Levy, well known as the co-creator and costar of the series Schitt's...