Alkami Announces Launch of Proposed $300,000,000 Convertible Senior Notes Offering
Alkami Technology (Nasdaq: ALKT) has announced its intention to offer $300 million in convertible senior notes due 2030 through a private offering to qualified institutional buyers. The company will grant initial purchasers an option for an additional $45 million in notes.
The notes will be senior, unsecured obligations with semi-annual interest payments, convertible under certain conditions into cash, common stock, or a combination thereof. They will be redeemable after March 20, 2028, if Alkami's stock price exceeds 130% of the conversion price.
The proceeds will fund capped call transactions and the pending acquisition of MANTL (Fin Technologies), with any remainder for general corporate purposes. The capped call transactions aim to reduce potential dilution from note conversions and offset potential cash payments above the principal amount of converted notes.
Alkami Technology (Nasdaq: ALKT) ha annunciato la sua intenzione di offrire 300 milioni di dollari in obbligazioni senior convertibili con scadenza nel 2030 tramite un'offerta privata a compratori istituzionali qualificati. L'azienda concederà ai compratori iniziali un'opzione per ulteriori 45 milioni di dollari in obbligazioni.
Le obbligazioni saranno obbligazioni senior non garantite con pagamenti di interessi semestrali, convertibili a determinate condizioni in contante, azioni ordinarie o una combinazione di entrambi. Saranno riscattabili dopo il 20 marzo 2028, se il prezzo delle azioni di Alkami supera il 130% del prezzo di conversione.
I proventi finanzieranno transazioni di capped call e l'acquisizione in sospeso di MANTL (Fin Technologies), con eventuali rimanenze destinate a scopi aziendali generali. Le transazioni di capped call mirano a ridurre la potenziale diluizione derivante dalle conversioni delle obbligazioni e a compensare i potenziali pagamenti in contante superiori all'importo principale delle obbligazioni convertite.
Alkami Technology (Nasdaq: ALKT) ha anunciado su intención de ofrecer 300 millones de dólares en notas senior convertibles con vencimiento en 2030 a través de una oferta privada a compradores institucionales calificados. La empresa otorgará a los compradores iniciales una opción por otros 45 millones de dólares en notas.
Las notas serán obligaciones senior no garantizadas con pagos de intereses semestrales, convertibles bajo ciertas condiciones en efectivo, acciones ordinarias o una combinación de ambos. Serán redimibles después del 20 de marzo de 2028, si el precio de las acciones de Alkami supera el 130% del precio de conversión.
Los ingresos financiarán transacciones de capped call y la adquisición pendiente de MANTL (Fin Technologies), con cualquier remanente destinado a fines corporativos generales. Las transacciones de capped call tienen como objetivo reducir la posible dilución de las conversiones de notas y compensar los posibles pagos en efectivo por encima del monto principal de las notas convertidas.
알카미 테크놀로지 (Nasdaq: ALKT)는 2030년 만기 전환형 선순위 채권 3억 달러를 자격을 갖춘 기관 투자자에게 비공식적으로 제공할 계획을 발표했습니다. 회사는 초기 구매자에게 추가로 4,500만 달러의 채권에 대한 옵션을 부여할 것입니다.
채권은 반기 이자 지급이 있는 선순위 무담보 의무로, 특정 조건에 따라 현금, 보통주 또는 이들의 조합으로 전환될 수 있습니다. 알카미의 주가가 전환 가격의 130%를 초과하면 2028년 3월 20일 이후에 상환될 수 있습니다.
수익금은 capped call 거래와 MANTL (Fin Technologies)의 인수에 사용되며, 잔여 금액은 일반 기업 용도로 사용됩니다. Capped call 거래는 채권 전환으로 인한 잠재적 희석을 줄이고 전환된 채권의 원금 이상에 대한 잠재적 현금 지급을 상쇄하는 것을 목표로 합니다.
Alkami Technology (Nasdaq: ALKT) a annoncé son intention d'offrir 300 millions de dollars en obligations senior convertibles arrivant à échéance en 2030 par le biais d'une offre privée à des acheteurs institutionnels qualifiés. La société accordera aux acheteurs initiaux une option pour un montant supplémentaire de 45 millions de dollars en obligations.
Les obligations seront des obligations senior non garanties avec des paiements d'intérêts semestriels, convertibles sous certaines conditions en espèces, en actions ordinaires ou en une combinaison des deux. Elles seront remboursables après le 20 mars 2028, si le prix de l'action d'Alkami dépasse 130 % du prix de conversion.
Les produits seront utilisés pour financer des transactions de capped call et l'acquisition en cours de MANTL (Fin Technologies), tout excédent étant destiné à des fins corporatives générales. Les transactions de capped call visent à réduire la dilution potentielle due aux conversions d'obligations et à compenser les paiements en espèces potentiels supérieurs au montant principal des obligations converties.
Alkami Technology (Nasdaq: ALKT) hat seine Absicht bekannt gegeben, 300 Millionen Dollar an wandelbaren vorrangigen Anleihen mit Fälligkeit 2030 über ein privates Angebot an qualifizierte institutionelle Käufer anzubieten. Das Unternehmen wird den ursprünglichen Käufern eine Option auf zusätzliche 45 Millionen Dollar an Anleihen gewähren.
Die Anleihen werden vorrangige, unbesicherte Verpflichtungen mit halbjährlichen Zinszahlungen sein, die unter bestimmten Bedingungen in Bargeld, Stammaktien oder eine Kombination davon umwandelbar sind. Sie können nach dem 20. März 2028 zurückgezahlt werden, wenn der Aktienkurs von Alkami 130 % des Umwandlungspreises überschreitet.
Die Erlöse werden Transaktionen mit capped call und die bevorstehende Übernahme von MANTL (Fin Technologies) finanzieren, wobei der verbleibende Betrag für allgemeine Unternehmenszwecke verwendet wird. Die capped call Transaktionen zielen darauf ab, potenzielle Verwässerungen durch die Umwandlung von Anleihen zu reduzieren und potenzielle Barzahlungen über dem Hauptbetrag der umgewandelten Anleihen auszugleichen.
- Significant capital raise of $300M through convertible notes
- Strategic acquisition of MANTL to expand business capabilities
- Implementation of capped call transactions to minimize shareholder dilution
- Increased debt obligation with new $300M convertible notes
- Potential future dilution for shareholders upon note conversion
- Additional interest payment obligations impacting cash flow
Insights
Alkami's $300 million convertible senior notes offering (with potential for $345 million if overallotment option exercised) represents a strategic financing move to fund its pending acquisition of MANTL while managing dilution concerns. The 2030 maturity provides a 5-year runway before repayment becomes due, giving Alkami significant operational flexibility.
The company's implementation of capped call transactions is particularly notable as it demonstrates management's commitment to existing shareholders by reducing potential dilution and offsetting potential cash payments above principal for converted notes. This sophisticated capital management approach balances growth needs with shareholder considerations.
The convertible structure gives Alkami flexibility in settlement (cash, shares, or combination), which provides optionality in managing its future capital structure. The redemption provisions allowing call-back after March 2028 if stock price exceeds 130% of conversion price create potential upside scenarios for the company if its growth strategy succeeds.
Using this capital primarily for the MANTL acquisition signals Alkami's commitment to expanding its digital banking platform capabilities, though the explicit statement that the offering isn't contingent on closing the acquisition raises questions about alternative capital deployment if the deal falls through. The terms suggest Alkami is positioning for accelerated growth in the financial technology sector while implementing safeguards against excessive shareholder dilution.
This convertible offering provides Alkami with $300 million in growth capital while strategically managing its balance sheet impact. The 2030 maturity timeline aligns with long-term strategic planning horizons, while the convertible structure creates a lower interest burden than traditional debt would require.
The implementation of capped call transactions represents sophisticated financial engineering that effectively raises the conversion premium, protecting existing shareholders from dilution up to the cap price. These transactions essentially function as purchased call options that offset the embedded call options sold within the convertible notes structure.
Market reactions to such offerings typically depend on pricing terms (conversion premium, interest rate) which remain undetermined until final pricing. However, the disclosed redemption feature requiring 130% price appreciation suggests management confidence in share price upside potential.
The potential market impact from delta-hedging activities by option counterparties warrants attention, as these technical factors can temporarily influence share price around offering dates and during conversion periods. While the convertible offering increases Alkami's financial leverage, it provides acquisition financing without immediately diluting existing shareholders, representing a balanced capital markets approach to funding the MANTL acquisition while preserving financial flexibility for future opportunities.
The notes will be senior, unsecured obligations of Alkami, will accrue interest payable semi-annually in arrears and will mature on March 15, 2030, unless earlier repurchased, redeemed or converted. Noteholders will have the right to convert their notes in certain circumstances and during specified periods. Alkami will settle conversions by paying or delivering, as applicable, cash, shares of its common stock or a combination of cash and shares of its common stock, at Alkami's election.
The notes will be redeemable, in whole or in part (subject to certain limitations), for cash at Alkami's option at any time, and from time to time, on or after March 20, 2028 and on or before the 62nd scheduled trading day immediately before the maturity date, but only if the last reported sale price per share of Alkami's common stock exceeds
If certain corporate events that constitute a "fundamental change" occur, then, subject to a limited exception, noteholders may require Alkami to repurchase their notes for cash. The repurchase price will be equal to the principal amount of the notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the applicable repurchase date.
The interest rate, initial conversion rate and other terms of the notes will be determined at the pricing of the Offering.
Alkami expects to use a portion of the net proceeds from the Offering to fund the cost of entering into the capped call transactions described below, and the remainder, together with cash on hand, which may include proceeds from drawing on Alkami's existing credit facility, and restricted stock units issued to continuing employees of Fin Technologies, Inc. dba MANTL ("MANTL"), to fund the previously announced pending acquisition of MANTL. Alkami expects to use any remaining net proceeds from the Offering for general corporate purposes. If the initial purchasers exercise their option to purchase additional notes, then Alkami intends to use a portion of the additional net proceeds to fund the cost of entering into additional capped call transactions as described below. The completion of the Offering is not contingent on the closing of the MANTL acquisition. There can be no assurance that the MANTL acquisition will be completed in a timely manner or at all. If the MANTL acquisition does not close, Alkami intends to the use the net proceeds from the Offering to fund the capped call transactions and for general corporate purposes.
In connection with the pricing of the notes, Alkami expects to enter into privately negotiated capped call transactions with one or more of the initial purchasers or their affiliates and/or one or more other financial institutions (the "option counterparties"). The capped call transactions are expected to cover, subject to anti-dilution adjustments substantially similar to those applicable to the notes, the number of shares of Alkami's common stock that will initially underlie the notes. If the initial purchasers exercise their option to purchase additional notes, then Alkami expects to enter into additional capped call transactions with the option counterparties.
The capped call transactions are expected generally to reduce the potential dilution to Alkami's common stock upon any conversion of the notes and/or offset any potential cash payments Alkami is required to make in excess of the principal amount of converted notes, as the case may be. If, however, the market price per share of Alkami's common stock, as measured under the terms of the capped call transactions, exceeds the cap price of the capped call transactions, there would nevertheless be dilution and/or there would not be an offset of such potential cash payments, in each case, to the extent that such market price exceeds the cap price of the capped call transactions.
In connection with establishing their initial hedges of the capped call transactions, the option counterparties or their respective affiliates expect to enter into various derivative transactions with respect to Alkami's common stock and/or purchase shares of Alkami's 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 Alkami's common stock or the market value of the notes at that time.
In addition, the option counterparties or their respective affiliates may modify their hedge positions by entering into or unwinding various derivatives with respect to Alkami's common stock and/or purchasing or selling Alkami's common stock or other securities of Alkami in secondary market transactions following the pricing of the notes and prior to the maturity of the notes (and are likely to do so (x) during any observation period related to a conversion of notes or following any repurchase of the notes by Alkami in connection with any redemption or fundamental change, (y) following any repurchase of the notes by Alkami other than in connection with any redemption or fundamental change if Alkami elects to unwind a corresponding portion of the capped call transactions in connection with such repurchase and (z) if Alkami otherwise unwinds all or a portion of the capped call transactions). This activity could also cause or avoid an increase or decrease in the market price of Alkami's common stock or the notes, which could affect noteholders' ability to convert the notes and, to the extent the activity occurs during any observation period related to a conversion of notes, it could affect the amount and value of the consideration that noteholders will receive upon conversion of the notes.
The offer and sale of the notes and any shares of common stock issuable upon conversion of the notes have not been, and will not be, registered under the Securities Act or any other securities laws, and the notes and any such shares cannot be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any other applicable securities laws.
This press release is for informational purposes only and shall not constitute an offer to sell or a solicitation of an offer to buy the notes or any shares of common stock issuable upon conversion of the notes, nor shall there be any sale of the notes or any such shares, in any state or jurisdiction in which such an offer, solicitation, or sale would be unlawful.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains "forward-looking" statements relating to the anticipated terms of the notes being offered, the completion, timing and size of the proposed Offering of the notes, the intended use of the net proceeds, the anticipated terms of, and the effects of entering into, the capped call transactions, and the anticipated closing of Alkami's acquisition of MANTL. These forward-looking statements are based on management's beliefs and assumptions and on information currently available to management. Forward-looking statements include all statements that are not historical facts and may be identified by terms such as "expects," "believes," "plans," or similar expressions and the negatives of those terms. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements, expressed or implied by the forward-looking statements. Factors that may materially affect such forward-looking statements include: our limited operating history and history of operating losses; our ability to manage future growth; our ability to attract new clients and retain and expand existing clients' use of our solutions; the unpredictable and time-consuming nature of our sales cycles; our ability to maintain, protect and enhance our brand; our ability to accurately predict the long-term rate of client subscription renewals or adoption of our solutions; our reliance on third-party software, content and services; our ability to effectively integrate our solutions with other systems used by our clients; intense competition in our industry; any downturn, consolidation or decrease in technology spend in the financial services industry, including as a result of recent closures of certain financial institutions and liquidity concerns at other financial institutions; our ability and the ability of third parties on which we rely to prevent and identify breaches of security measures (including cybersecurity) and resulting disruptions of our systems or operations and unauthorized access to client customer and other data; our ability to successfully integrate acquired companies or businesses; our ability to successfully close the acquisition of MANTL; our ability to comply with regulatory and legal requirements and developments; our ability to attract and retain key employees; the political, economic and competitive conditions in the markets and jurisdictions where we operate; our ability to maintain, develop and protect our intellectual property; our ability to respond to evolving technological requirements to develop or acquire new and enhanced products that achieve market acceptance in a timely manner; our ability to estimate our expenses, future revenues, capital requirements, our needs for additional financing and our ability to obtain additional capital; our ability to complete the Offering; the final terms of the Offering; the satisfaction of customary closing conditions with respect to the Offering; and other factors described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 28, 2025. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
Investor Relations Contact
Steve Calk
ir@alkami.com
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SOURCE Alkami Technology, Inc.
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