SAN JOSE, Calif. - Super Micro Computer, Inc. (NASDAQ:SMCI), a company specializing in IT solutions for various sectors, announced plans to offer $1.5 billion in convertible senior notes due in 2029, with an additional option for purchasers to acquire up to $225 million more, depending on market conditions and other factors. These notes will be available to qualified institutional buyers under Rule 144A of the Securities Act of 1933.
The convertible notes, maturing on March 1, 2029, will be senior, unsecured obligations of the company, accruing interest payable semi-annually. They will be convertible into cash, shares of Supermicro's common stock, or a combination thereof, at the company's discretion, under certain conditions and during specific periods before September 1, 2028, and at any time up until the maturity date thereafter.
In an effort to mitigate potential dilution from the conversion of these notes or to offset potential cash payments exceeding the principal amount, Supermicro expects to enter into capped call transactions with certain financial institutions, which may include the notes' initial purchasers or their affiliates. These transactions may influence the market price of Supermicro's common stock or the notes themselves, as the financial institutions may engage in derivative transactions and stock purchases concurrently with, or shortly after, the pricing of the notes.
The company intends to use a portion of the net proceeds from the offering to fund the cost of the capped call transactions, with the remainder allocated for general corporate purposes, including working capital to support growth and business expansion.
This announcement does not constitute an offer to sell or a solicitation to buy the convertible notes or any shares of common stock potentially issued upon their conversion. The offering of these securities has not been registered under the Securities Act or any state securities laws and may not be sold in the United States without registration or an exemption from registration requirements.
The information in this news article is based on a press release statement from Super Micro Computer, Inc.
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