MicroStrategy Announces Pricing of Offering of Convertible Senior Notes
MicroStrategy (MSTR) has priced an offering of $875 million in 0.625% convertible senior notes due 2028, upsized from the previously announced $700 million. The notes will be sold to qualified institutional buyers under Rule 144A. The company granted an option to purchase up to an additional $135 million in notes. The notes will mature on September 15, 2028, with an initial conversion rate of 5.4589 shares per $1,000 principal amount, equivalent to a conversion price of $183.19 per share.
MicroStrategy plans to use the net proceeds, estimated at $864.1 million, to redeem all $500 million of its 6.125% Senior Secured Notes due 2028 and to acquire additional bitcoin. Upon redemption of the Senior Secured Notes, collateral including approximately 69,080 bitcoins will be released.
MicroStrategy (MSTR) ha annunciato un'offerta di 875 milioni di dollari in note convertibili senior allo 0,625% con scadenza nel 2028, aumentando rispetto ai 700 milioni di dollari precedentemente annunciati. Le note saranno vendute a compratori istituzionali qualificati secondo la Regola 144A. L'azienda ha concesso un'opzione di acquisto fino a un ulteriore 135 milioni di dollari in note. Le note scadranno il 15 settembre 2028, con un tasso di conversione iniziale di 5,4589 azioni per un importo principale di 1.000 dollari, equivalente a un prezzo di conversione di 183,19 dollari per azione.
MicroStrategy prevede di utilizzare i proventi netti, stimati in 864,1 milioni di dollari, per rimborsare tutti i 500 milioni di dollari delle sue note senior garantite al 6,125% in scadenza nel 2028 e per acquistare ulteriore bitcoin. Dopo il rimborso delle note senior garantite, saranno rilasciate garanzie che includono circa 69.080 bitcoin.
MicroStrategy (MSTR) ha establecido un precio para una oferta de 875 millones de dólares en notas convertibles senior al 0,625% con vencimiento en 2028, aumentando desde los 700 millones de dólares anunciados anteriormente. Las notas se venderán a compradores institucionales calificados bajo la Regla 144A. La empresa otorgó una opción para comprar hasta un adicional de 135 millones de dólares en notas. Las notas vencerán el 15 de septiembre de 2028, con una tasa de conversión inicial de 5,4589 acciones por cada 1.000 dólares de monto principal, equivalente a un precio de conversión de 183,19 dólares por acción.
MicroStrategy planea utilizar los ingresos netos, estimados en 864,1 millones de dólares, para redimir los 500 millones de dólares de sus Notas Senior Garantizadas al 6,125% que vencen en 2028 y para adquirir bitcoin adicional. Al redimir las Notas Senior Garantizadas, se liberará colateral que incluye aproximadamente 69.080 bitcoins.
MicroStrategy (MSTR)는 2028년 만기 0.625% 전환형 선순위 채권 8억 7500만 달러의 가격을 책정했으며, 이는 이전에 발표한 7억 달러에서 증가한 것입니다. 채권은 규칙 144A에 따라 자격을 갖춘 기관 구매자에게 판매됩니다. 회사는 최대 1억 3500만 달러의 추가 채권 구매 옵션을 부여했습니다. 채권의 만기는 2028년 9월 15일이며, 초기 전환 비율은 1,000달러의 원금에 대해 5.4589주로, 즉 주당 183.19달러의 전환 가격에 해당합니다.
MicroStrategy는 순수익 중 8억 6410만 달러를 사용하여 2028년 만기 6.125% 선순위 보장 채권 5억 달러를 모두 상환하고 추가 비트코인을 구매할 계획입니다. 선순위 보장 채권 상환 후에는 약 69,080 bitcoins이 포함된 담보가 해제됩니다.
MicroStrategy (MSTR) a fixé une offre de 875 millions de dollars en obligations convertibles senior à 0,625% échues en 2028, augmentant par rapport aux 700 millions de dollars précédemment annoncés. Les obligations seront vendues à des acheteurs institutionnels qualifiés selon la règle 144A. L'entreprise a accordé une option d'achat jusqu'à 135 millions de dollars supplémentaires en obligations. Les obligations arriveront à échéance le 15 septembre 2028, avec un taux de conversion initial de 5,4589 actions pour un montant principal de 1 000 dollars, équivalent à un prix de conversion de 183,19 dollars par action.
MicroStrategy prévoit d'utiliser le produit net, estimé à 864,1 millions de dollars, pour racheter l'intégralité des 500 millions de dollars de ses obligations senior garanties à 6,125% échues en 2028 et pour acquérir des bitcoins supplémentaires. À la suite du rachat des obligations senior garanties, des garanties incluant environ 69 080 bitcoins seront libérées.
MicroStrategy (MSTR) hat ein Angebot von 875 Millionen US-Dollar in 0,625% wandelbaren vorrangigen Anleihen mit Fälligkeit im Jahr 2028 festgesetzt, was eine Erhöhung gegenüber den zuvor angekündigten 700 Millionen US-Dollar darstellt. Die Anleihen werden an qualifizierte institutionelle Käufer gemäß Regel 144A verkauft. Das Unternehmen hat eine Option auf den Erwerb von bis zu zusätzlichen 135 Millionen US-Dollar an Anleihen gewährt. Die Anleihen laufen am 15. September 2028 ab, mit einem anfänglichen Umwandlungsverhältnis von 5,4589 Aktien pro 1.000 US-Dollar Nennbetrag, was einem Umwandlungspreis von 183,19 US-Dollar pro Aktie entspricht.
MicroStrategy plant, den Nettoerlös in Höhe von 864,1 Millionen US-Dollar zu verwenden, um alle 500 Millionen US-Dollar ihrer 6,125% vorrangigen gesicherten Anleihen, die 2028 fällig werden, zurückzuzahlen und um zusätzliche Bitcoins zu erwerben. Nach der Rückzahlung der vorrangigen gesicherten Anleihen wird die Sicherheit, die etwa 69.080 Bitcoins umfasst, freigegeben.
- Upsized offering from $700 million to $875 million, indicating strong investor interest
- Lower interest rate of 0.625% compared to 6.125% on the Senior Secured Notes being redeemed
- Release of 69,080 bitcoins from collateral upon redemption of Senior Secured Notes
- Net proceeds of $864.1 million to be used for debt refinancing and acquiring additional bitcoin
- Potential dilution for existing shareholders if notes are converted to common stock
- Increased debt load with $875 million in new convertible notes
MicroStrategy's $875 million convertible note offering at a 0.625% interest rate is a strategic move to refinance debt and potentially acquire more bitcoin. The upsizing from $700 million and favorable terms indicate strong investor interest. The 40% conversion premium suggests confidence in future stock appreciation. By redeeming $500 million of 6.125% Senior Secured Notes, the company will reduce interest expenses and free up 69,080 bitcoins used as collateral. This could provide more flexibility for bitcoin acquisitions. However, the dilution risk for shareholders if notes are converted should be considered. Overall, this refinancing strengthens MicroStrategy's balance sheet and aligns with its bitcoin-focused strategy.
MicroStrategy's move to raise
MicroStrategy's debt restructuring through this convertible note offering is a savvy financial maneuver. By replacing
The notes will be unsecured, senior obligations of MicroStrategy, and will bear interest at a rate of
Holders of notes may require MicroStrategy to repurchase their notes on September 15, 2027 or upon the occurrence of certain events that constitute a fundamental change under the indenture governing the notes at a repurchase price equal to
The notes will be convertible into cash, shares of MicroStrategy’s class A common stock, or a combination of cash and shares of MicroStrategy’s class A common stock, at MicroStrategy’s election. Prior to March 15, 2028, the notes will be convertible only upon the occurrence of certain events and during certain periods, and thereafter, at any time until the second scheduled trading day immediately preceding the maturity date.
The conversion rate for the notes will initially be 5.4589 shares of MicroStrategy class A common stock per
MicroStrategy estimates that the net proceeds from the sale of the notes will be approximately
MicroStrategy intends to use the net proceeds from the offering to redeem all
The notes are being offered and sold to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act. The offer and sale of the notes and the shares of MicroStrategy’s class A common stock issuable upon conversion of the notes, if any, have not been and will not be registered under the Securities Act or the securities laws of any other jurisdiction, and the notes and any such shares may not be offered or sold in
This press release shall not constitute an offer to sell, or a solicitation of an offer to buy the notes, nor shall there be any sale of, the notes in any state or jurisdiction in which such offer, solicitation or sale would be unlawful under the securities laws of any such state or jurisdiction. This press release is not a notice of redemption with respect to the Senior Secured Notes, and any redemption will be or has been made in accordance with the terms of the indenture governing the Senior Secured Notes. There can be no assurances that the offering of the notes, or the redemption of the Senior Secured Notes, will be completed as described herein or at all.
About MicroStrategy Incorporated
MicroStrategy (Nasdaq: MSTR) considers itself the world’s first Bitcoin development company. We are a publicly-traded operating company committed to the continued development of the Bitcoin network through our activities in the financial markets, advocacy and technology innovation. As an operating business, we are able to use cashflows as well as proceeds from equity and debt financings to accumulate bitcoin, which serves as our primary treasury reserve asset. We also develop and provide industry-leading AI-powered enterprise analytics software that promotes our vision of Intelligence Everywhere, and are using our software development capabilities to develop bitcoin applications. We believe that the combination of our operating structure, bitcoin strategy and focus on technology innovation provides a unique opportunity for value creation.
MicroStrategy and Intelligence Everywhere are either trademarks or registered trademarks of MicroStrategy Incorporated in
Forward-Looking Statements
Statements in this press release about future expectations, plans, and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements relating to the estimated net proceeds of the offering, the anticipated use of such net proceeds, including the anticipated redemption of the Senior Secured Notes, and the anticipated closing date. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the uncertainties related to market conditions and the completion of the offering on the anticipated terms or at all, the uncertainties related to the satisfaction of closing conditions for the sale of the notes, the other factors discussed in the “Risk Factors” section of MicroStrategy’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 6, 2024, and the risks described in other filings that MicroStrategy may make with the Securities and Exchange Commission. Any forward-looking statements contained in this press release speak only as of the date hereof, and MicroStrategy specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.
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MicroStrategy Incorporated
Shirish Jajodia
Investor Relations
ir@microstrategy.com
Source: MicroStrategy Incorporated
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