Alkami Announces Pricing of $300 Million Convertible Senior Notes Offering
Alkami Technology (Nasdaq: ALKT) has announced the pricing of $300 million convertible senior notes due 2030 in a private offering to qualified institutional buyers. The notes will carry a 1.50% annual interest rate, payable semi-annually, with an initial conversion price of $32.82 per share, representing a 37.5% premium over the last reported share price of $23.87.
The company estimates net proceeds of approximately $290.3 million, which will be used to fund capped call transactions ($29.5 million) and the pending acquisition of MANTL. The notes will mature on March 15, 2030, with noteholders having conversion rights under certain conditions. Alkami will have the option to settle conversions through cash, common stock, or a combination of both.
The company has also entered into capped call transactions to reduce potential dilution and offset potential cash payments above the principal amount of converted notes. The cap price is set at $47.74 per share, representing a 100% premium over the current stock price.
Alkami Technology (Nasdaq: ALKT) ha annunciato il prezzo di 300 milioni di dollari in note senior convertibili con scadenza nel 2030 in un'offerta privata per acquirenti istituzionali qualificati. Le note porteranno un tasso di interesse annuo dell'1,50%, pagabile semestralmente, con un prezzo di conversione iniziale di 32,82 dollari per azione, che rappresenta un premio del 37,5% rispetto all'ultimo prezzo delle azioni riportato di 23,87 dollari.
L'azienda stima proventi netti di circa 290,3 milioni di dollari, che saranno utilizzati per finanziare transazioni di capped call (29,5 milioni di dollari) e l'acquisizione in sospeso di MANTL. Le note scadranno il 15 marzo 2030, con i detentori delle note che avranno diritti di conversione a determinate condizioni. Alkami avrà l'opzione di liquidare le conversioni tramite contante, azioni ordinarie o una combinazione di entrambi.
L'azienda ha anche avviato transazioni di capped call per ridurre la potenziale diluizione e compensare i potenziali pagamenti in contante superiori all'importo principale delle note convertite. Il prezzo di cap è fissato a 47,74 dollari per azione, rappresentando un premio del 100% rispetto all'attuale prezzo delle azioni.
Alkami Technology (Nasdaq: ALKT) ha anunciado el precio de 300 millones de dólares en notas senior convertibles que vencerán en 2030 en una oferta privada para compradores institucionales calificados. Las notas tendrán una tasa de interés anual del 1.50%, pagadera semestralmente, con un precio de conversión inicial de 32.82 dólares por acción, lo que representa una prima del 37.5% sobre el último precio de acción reportado de 23.87 dólares.
La compañía estima ingresos netos de aproximadamente 290.3 millones de dólares, que se utilizarán para financiar transacciones de capped call (29.5 millones de dólares) y la adquisición pendiente de MANTL. Las notas vencerán el 15 de marzo de 2030, con los tenedores de notas teniendo derechos de conversión bajo ciertas condiciones. Alkami tendrá la opción de liquidar las conversiones a través de efectivo, acciones comunes o una combinación de ambos.
La empresa también ha entrado en transacciones de capped call para reducir la posible dilución y compensar los posibles pagos en efectivo por encima del monto principal de las notas convertidas. El precio de cap está establecido en 47.74 dólares por acción, lo que representa una prima del 100% sobre el precio actual de las acciones.
알카미 테크놀로지 (Nasdaq: ALKT)는 3억 달러 규모의 전환형 선순위 노트를 2030년 만기로 자격 있는 기관 투자자에게 비공식적으로 판매한다고 발표했습니다. 이 노트는 연 1.50%의 이자율을 적용받으며, 반기별로 지급되며, 초기 전환 가격은 주당 32.82달러로, 마지막 보고된 주가 23.87달러에 비해 37.5%의 프리미엄을 나타냅니다.
회사는 약 2억 9천 3백만 달러의 순수익을 추정하고 있으며, 이는 캡드 콜 거래(2천 9백 5십만 달러) 및 MANTL의 인수에 사용할 예정입니다. 이 노트는 2030년 3월 15일 만료되며, 노트 소지자는 특정 조건 하에 전환권을 가집니다. 알카미는 현금, 보통주 또는 두 가지의 조합을 통해 전환을 정산할 수 있는 옵션이 있습니다.
회사는 또한 잠재적인 희석을 줄이고 전환된 노트의 원금 이상의 현금 지급을 상쇄하기 위해 캡드 콜 거래를 체결했습니다. 캡 가격은 주당 47.74달러로 설정되어 있으며, 이는 현재 주가에 비해 100%의 프리미엄을 나타냅니다.
Alkami Technology (Nasdaq: ALKT) a annoncé le prix de 300 millions de dollars d'obligations senior convertibles arrivant à échéance en 2030 dans le cadre d'une offre privée destinée aux acheteurs institutionnels qualifiés. Les obligations porteront un taux d'intérêt annuel de 1,50%, payable semestriellement, avec un prix de conversion initial de 32,82 dollars par action, représentant une prime de 37,5 % par rapport au dernier prix de l'action signalé de 23,87 dollars.
L'entreprise estime des produits nets d'environ 290,3 millions de dollars, qui seront utilisés pour financer des transactions de capped call (29,5 millions de dollars) et l'acquisition en cours de MANTL. Les obligations arriveront à échéance le 15 mars 2030, les détenteurs d'obligations ayant des droits de conversion sous certaines conditions. Alkami aura la possibilité de régler les conversions par le biais de liquidités, d'actions ordinaires ou d'une combinaison des deux.
L'entreprise a également engagé des transactions de capped call pour réduire la dilution potentielle et compenser les paiements en espèces potentiels supérieurs au montant principal des obligations converties. Le prix de cap est fixé à 47,74 dollars par action, représentant une prime de 100 % par rapport au prix actuel de l'action.
Alkami Technology (Nasdaq: ALKT) hat die Preisgestaltung von 300 Millionen Dollar an wandelbaren vorrangigen Anleihen bekannt gegeben, die 2030 fällig werden, in einem privaten Angebot an qualifizierte institutionelle Käufer. Die Anleihen werden einen jährlichen Zinssatz von 1,50% haben, der halbjährlich zahlbar ist, mit einem anfänglichen Umwandlungspreis von 32,82 Dollar pro Aktie, was einer Prämie von 37,5% gegenüber dem zuletzt gemeldeten Aktienkurs von 23,87 Dollar entspricht.
Das Unternehmen schätzt einen Nettoerlös von etwa 290,3 Millionen Dollar, der zur Finanzierung von capped call Transaktionen (29,5 Millionen Dollar) und der bevorstehenden Übernahme von MANTL verwendet wird. Die Anleihen laufen am 15. März 2030 aus, wobei die Anleiheinhaber unter bestimmten Bedingungen Umwandlungsrechte haben. Alkami hat die Option, Umwandlungen in bar, Stammaktien oder einer Kombination aus beidem abzuwickeln.
Das Unternehmen hat auch capped call Transaktionen eingegangen, um potenzielle Verwässerungen zu reduzieren und mögliche Barzahlungen über dem Nennbetrag der umgewandelten Anleihen auszugleichen. Der Cap-Preis liegt bei 47,74 Dollar pro Aktie, was einer Prämie von 100% gegenüber dem aktuellen Aktienkurs entspricht.
- Successful pricing of $300M convertible notes offering provides significant capital
- Strategic acquisition of MANTL to be funded through offering proceeds
- Implementation of capped call transactions protects shareholders from dilution
- Favorable conversion premium of 37.5% above current stock price
- Potential dilution risk if stock price exceeds cap price of $47.74
- Additional debt burden with 1.50% interest payments
- Risk of not completing MANTL acquisition despite raising funds
Insights
Alkami's $300 million convertible senior notes offering represents a strategic capital raise that balances minimal near-term shareholder dilution with favorable financing terms. The 1.50% interest rate is notably low, while the 37.5% conversion premium ($32.82 vs current $23.87 share price) indicates management's confidence in future share appreciation. The 2030 maturity provides substantial runway.
The company's implementation of capped call transactions demonstrates financial sophistication by effectively raising the conversion premium to 100% ($47.74), significantly reducing potential dilution for existing shareholders. This structure creates a favorable financing window that only triggers equity conversion at substantially higher valuations.
Most critically, this financing enables Alkami to complete its acquisition of MANTL, a digital account opening platform that should expand Alkami's product suite and potentially accelerate growth. The acquisition aligns with industry consolidation trends as financial technology providers seek comprehensive solution sets.
While taking on debt introduces financial obligations, the low interest rate and extended maturity suggest minimal near-term impact on operating flexibility. The $290.3 million net proceeds (after approximately $9.7 million in costs) represent meaningful capital that can transform Alkami's competitive positioning through the MANTL acquisition and potentially fund additional growth initiatives.
This financing transaction reveals Alkami's calculated approach to funding its MANTL acquisition without immediately diluting shareholders. The structure demonstrates sophisticated capital management by securing low-cost debt (1.50%) while protecting against dilution through capped calls until shares reach double the current trading value.
The acquisition of MANTL has significant strategic implications. MANTL specializes in digital account opening solutions - a critical capability for financial institutions looking to accelerate customer acquisition. By integrating MANTL's technology, Alkami addresses a important pain point in the digital banking journey while expanding its addressable market.
The transaction timing aligns with banking technology consolidation trends, as financial institutions increasingly prefer comprehensive platform providers over point solutions. Alkami appears to be building an end-to-end digital banking ecosystem capable of competing against larger players like NCR, Fiserv, and Jack Henry.
The $300 million raise exceeds MANTL's likely acquisition cost, suggesting additional capital for future capabilities expansion or potential follow-on acquisitions. This positions Alkami to capitalize on fintech valuation compression by acquiring complementary technologies at favorable multiples.
Investors should recognize this as a strategic positioning move rather than merely a financial transaction - Alkami is systematically expanding its product capabilities while maintaining financial flexibility.
The notes will be senior, unsecured obligations of Alkami and will accrue interest at a rate of
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 a "fundamental change" (as defined in the indenture for the notes) occurs, 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.
Alkami estimates that the net proceeds from the Offering will be approximately
In connection with the pricing of the notes, Alkami entered into privately negotiated capped call transactions with certain of the initial purchasers or their affiliates and certain other financial institutions (the "option counterparties"). The capped call transactions cover, subject to anti-dilution adjustments substantially similar to those applicable to the notes, the number of shares of Alkami's common stock that 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 cap price of the capped call transactions is initially
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 prior to registration or qualification under the securities laws of any such state or jurisdiction.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains "forward-looking" statements relating to the Offering, the expected closing date and the satisfaction of customary closing conditions with respect to the Offering, Alkami's anticipated use of the net proceeds, the effects of entering into the capped call transactions, and the 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 satisfaction of customary closing conditions related 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.
FAQ
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