Supermicro Announces Private Placement of $700.0 Million of New 2.25% Convertible Senior Notes Due 2028 and Amendments to Existing 0.00% Convertible Senior Notes Due 2029
Super Micro Computer (NASDAQ: SMCI) has announced private agreements to issue $700.0 million of new 2.25% Convertible Senior Notes due 2028 and amend its existing 0.00% Convertible Senior Notes due 2029. The new notes will bear 2.25% annual interest, while amended notes will carry 3.50% interest.
The conversion price for new notes will be set at a 50% premium over the volume-weighted average stock price on February 12, 2025, while amended notes will have a 105% premium. Both transactions are expected to close around February 20, 2025. The company plans to use proceeds for general corporate purposes, including working capital for growth and business expansion.
The new notes will mature on July 15, 2028, with potential early redemption after March 1, 2026. Holders can require company repurchase upon fundamental changes at 100% principal plus accrued interest.
Super Micro Computer (NASDAQ: SMCI) ha annunciato accordi privati per emettere 700,0 milioni di dollari di nuove Obbligazioni Convertibili Senior al 2,25% con scadenza nel 2028 e modificare le sue Obbligazioni Convertibili Senior esistenti allo 0,00% con scadenza nel 2029. Le nuove obbligazioni porteranno un interesse annuale del 2,25%, mentre quelle modificate porteranno un interesse del 3,50%.
Il prezzo di conversione per le nuove obbligazioni sarà fissato con un premio del 50% rispetto al prezzo medio ponderato in base al volume delle azioni del 12 febbraio 2025, mentre le obbligazioni modificate avranno un premio del 105%. Entrambe le transazioni dovrebbero chiudersi intorno al 20 febbraio 2025. L'azienda prevede di utilizzare i proventi per fini aziendali generali, inclusi il capitale circolante per la crescita e l'espansione del business.
Le nuove obbligazioni scadranno il 15 luglio 2028, con possibile rimborso anticipato dopo il 1 marzo 2026. I possessori possono richiedere il rimborso da parte dell'azienda in caso di cambiamenti fondamentali al 100% del capitale più gli interessi maturati.
Super Micro Computer (NASDAQ: SMCI) ha anunciado acuerdos privados para emitir 700,0 millones de dólares de nuevas Notas Senior Convertibles al 2,25% con vencimiento en 2028 y modificar sus Notas Senior Convertibles existentes al 0,00% con vencimiento en 2029. Las nuevas notas llevarán un interés anual del 2,25%, mientras que las notas modificadas tendrán un interés del 3,50%.
El precio de conversión para las nuevas notas se establecerá con una prima del 50% sobre el precio promedio ponderado por volumen de acciones del 12 de febrero de 2025, mientras que las notas modificadas tendrán una prima del 105%. Se espera que ambas transacciones se cierren alrededor del 20 de febrero de 2025. La empresa planea utilizar los ingresos para fines corporativos generales, incluido el capital de trabajo para el crecimiento y la expansión del negocio.
Las nuevas notas vencerán el 15 de julio de 2028, con posible redención anticipada después del 1 de marzo de 2026. Los tenedores podrán exigir la recompra por parte de la empresa en caso de cambios fundamentales al 100% del capital más intereses acumulados.
슈퍼 마이크로 컴퓨터 (NASDAQ: SMCI)는 7억 달러의 새로운 2.25% 전환 우선주채권을 2028년 만기로 발행하고, 기존 0.00% 전환 우선주채권을 2029년 만기로 수정하는 사적 계약을 발표했습니다. 새로운 채권은 연간 2.25%의 이자를 제공하며, 수정된 채권은 3.50%의 이자를 제공합니다.
새로운 채권의 전환 가격은 2025년 2월 12일의 거래량 가중 평균 주가에 대해 50%의 프리미엄으로 설정되며, 수정된 채권은 105%의 프리미엄을 갖습니다. 두 거래 모두 2025년 2월 20일경에 종료될 것으로 예상됩니다. 회사는 수익금을 일반 기업 목적으로 사용할 계획이며, 성장 및 사업 확장을 위한 운영 자본을 포함합니다.
새로운 채권은 2028년 7월 15일에 만기되며, 2026년 3월 1일 이후 조기 상환이 가능할 수 있습니다. 보유자는 근본적인 변화가 발생할 경우 기본금 100%와 함께 발생한 이자를 포함하여 회사에 매입을 요구할 수 있습니다.
Super Micro Computer (NASDAQ: SMCI) a annoncé des accords privés pour émettre 700,0 millions de dollars de nouvelles Obligations Convertibles Senior à 2,25% arrivant à échéance en 2028 et modifier ses Obligations Convertibles Senior existantes à 0,00% arrivant à échéance en 2029. Les nouvelles obligations porteront un intérêt annuel de 2,25%, tandis que les obligations modifiées porteront un intérêt de 3,50%.
Le prix de conversion des nouvelles obligations sera fixé à une prime de 50% par rapport au prix moyen pondéré par le volume des actions au 12 février 2025, tandis que les obligations modifiées auront une prime de 105%. Les deux transactions devraient être finalisées aux alentours du 20 février 2025. L'entreprise prévoit d'utiliser les fonds pour des besoins généraux, notamment pour le fonds de roulement et l'expansion de ses activités.
Les nouvelles obligations arriveront à échéance le 15 juillet 2028, avec un remboursement anticipé éventuel après le 1er mars 2026. Les détenteurs pourront demander un rachat par l'entreprise en cas de changements fondamentaux à 100% du montant principal plus les intérêts courus.
Super Micro Computer (NASDAQ: SMCI) hat private Vereinbarungen zur Emission von 700,0 Millionen Dollar an neuen 2,25% wandelbaren Senioranleihen mit Fälligkeit im Jahr 2028 sowie zur Änderung seiner bestehenden 0,00% wandelbaren Senioranleihen mit Fälligkeit im Jahr 2029 angekündigt. Die neuen Anleihen werden einen jährlichen Zinssatz von 2,25% haben, während die geänderten Anleihen 3,50% Zinsen tragen werden.
Der Umwandlungspreis für die neuen Anleihen wird mit einer Prämie von 50% über dem volumen-weighted Durchschnittspreis der Aktien vom 12. Februar 2025 festgelegt, während die geänderten Anleihen eine Prämie von 105% haben werden. Beide Transaktionen sollen voraussichtlich rund um den 20. Februar 2025 abgeschlossen werden. Das Unternehmen plant, die Erlöse für allgemeine Unternehmenszwecke zu verwenden, einschließlich Betriebskapital für Wachstum und Geschäftserweiterung.
Die neuen Anleihen laufen am 15. Juli 2028 aus, mit einer möglichen vorzeitigen Rückzahlung nach dem 1. März 2026. Inhaber können die Rücknahme durch das Unternehmen bei grundlegenden Änderungen zum 100%igen Kapitalbetrag zuzüglich aufgelaufener Zinsen verlangen.
- Secured $700 million in new financing for growth and business expansion
- Company maintains flexibility with conversion and redemption options
- Increased interest expense with 2.25% on new notes and 3.50% on amended notes (from 0.00%)
- Potential dilution risk for shareholders upon conversion
- Additional debt burden on company's balance sheet
Insights
This complex financial transaction reveals several strategic implications for Supermicro's capital structure and growth trajectory. The $700 million new note issuance with a 2.25% interest rate represents a calculated move to secure growth capital in the current high-interest-rate environment, while the amendment of existing zero-coupon notes to 3.50% suggests a proactive approach to debt management.
The conversion premium structure is particularly noteworthy. The 50% premium on new notes and 105% premium on amended notes indicates management's strong confidence in future stock appreciation while providing some protection against immediate dilution. This tiered approach to conversion prices creates a balanced framework that serves both existing shareholders and new investors.
The modification of the capped call transactions merits attention, as it demonstrates sophisticated financial engineering to manage potential dilution. These hedging arrangements, combined with the expected convertible arbitrage activities by note holders, could create short-term price volatility but ultimately provide a more stable long-term capital structure.
The timing of this refinancing, amidst Supermicro's recent strong performance in the AI infrastructure market, suggests a strategic move to capitalize on favorable market conditions while securing capital for expansion. The semi-annual interest payments and flexible conversion terms provide the company with operational flexibility while maintaining a reasonable cost of capital.
The use of proceeds for 'working capital and business expansion' indicates potential aggressive growth plans, particularly in scaling production capacity to meet surging demand for AI-optimized server solutions. This capital raise positions Supermicro to potentially capture larger market share in the rapidly expanding AI infrastructure sector.
The New Convertible Notes
The New Convertible Notes will be senior, unsecured obligations of the Company, and will bear interest at an annual rate of
The New Convertible Notes will be redeemable, in whole or in part (subject to certain limitations), for cash at the Company’s option at any time, and from time to time, on or after March 1, 2026 and on or before the 20th scheduled trading day immediately before the maturity date, but only if the last reported sale price per share of the Company’s common stock exceeds
Holders of the New Convertible Notes will have the right to require the Company to repurchase all or a portion of their New Convertible Notes upon the occurrence of a fundamental change (as defined in the indenture governing the New Convertible Notes) at a cash repurchase price of
The Amended Convertible Notes
The Amended Convertible Notes will bear interest from the effective date of the Amendments at an annual rate of
In connection with the Amendments, the Company expects some or all of the holders of the Amended Convertible Notes and/or the New Convertible Notes may enter into or unwind various derivatives with respect to the Company’s common stock and/or purchase or sell shares of the Company’s common stock concurrently with or shortly after the determination of the amended conversion price for the Amended Convertible Notes and the determination of the conversion price for the New Convertible Notes. In particular, the Company expects that many holders of the Amended Convertible Notes employ, and holders of the New Convertible Notes will employ, a convertible arbitrage strategy with respect to the such notes and have or will establish a short position with respect to the Company’s common stock that they would modify or establish through purchases or sales of the Company’s common stock and/or entering into or unwinding various derivatives with respect to the Company’s common stock, as the case may be, in connection with the Amendments or the Subscription. These transactions could cause or avoid an increase or a decrease in the market price of the Company’s common stock, which may also affect the trading price of the Amended Convertible Notes or the New Convertible Notes at that time. In particular, this activity could affect the market price of Company’s common stock concurrently with the pricing of the Amended Convertible Notes or the New Convertible Notes, and could therefore affect the conversion price for the Amended Convertible Notes or the New Convertible Notes.
In connection with the pricing of the Existing Convertible Notes in February of 2024, the Company entered into privately negotiated capped call transactions with certain financial institutions (the “option counterparties”). The capped call transactions cover, subject to anti-dilution adjustments substantially similar to those applicable to the Existing Convertible Notes, the number of shares of the Company’s common stock underlying the Existing Convertible Notes. As a result of the Amendments, the Company intends to either amend the terms of and/or terminate all or a portion of the capped call transactions. Following any such amendment or termination, the option counterparties or their respective affiliates may modify or terminate their hedge positions by entering into or unwinding various derivatives with respect to the Company's common stock and/or purchasing or selling the Company’s common stock or other securities of the Company concurrently with or shortly after such amendment or termination of the capped call transactions. This activity could also cause or avoid an increase or a decrease in the market price of the Company’s common stock or the Amended Convertible Notes or the New Convertible Notes at that time. In particular, this activity could affect the market price of the Company’s common stock concurrently with the pricing of the Amended Convertible Notes or the New Convertible Notes, and could therefore affect the conversion price for the Amended Convertible Notes or the New Convertible Notes.
Neither the Amended Convertible Notes, the New Convertible Notes, nor any shares of the Company’s common stock issuable upon conversion of the Amended Convertible Notes or the New Convertible Notes, have been registered under the Securities Act or any state securities laws, and unless so registered, 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 Amended Convertible Notes, the New Convertible Notes, the Company’s common stock potentially issuable upon conversion of the Amended Convertible Notes or the New Convertible Notes or any other securities, and will not constitute an offer, solicitation or sale 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 includes forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, among other things, the anticipated terms of the Amended Convertible Notes and the New Convertible Notes, statements regarding the intended use of the proceeds from the Subscription and the potential impact of anticipated transactions by holders of the Amended Convertible Notes, the New Convertible Notes, and the option counterparties on the Company’s securities. Forward-looking statements may be identified by the use of the words “may,” “will,” “expect,” “intend” and other similar expressions. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. These forward-looking statements are based on management’s current expectations and beliefs about future events and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those implied by the forward-looking statements. Among those risks and uncertainties include, but are not limited to, the risks related to whether the Company will consummate the Amendments or the Subscription on the expected terms or at all, the anticipated effects of holders of the Amended Convertible Notes or the New Convertible Notes or the option counterparties entering into or unwinding derivative transactions with respect to the Company’s common stock and/or purchasing or selling the Company’s common stock, market and general conditions, and risks relating to the Company’s business, including those described in periodic reports that the Company files from time to time with the Securities and Exchange Commission. The forward-looking statements included in this press release speak only as of the date of this press release, and the Company does not undertake to update the statements included in this press release for subsequent developments, except as may be required by law.
About Super Micro Computer, Inc.
Supermicro (NASDAQ: SMCI) is a global leader in Application-Optimized Total IT Solutions. Founded and operating in
Supermicro, Server Building Block Solutions, and We Keep IT Green are trademarks and/or registered trademarks of Super Micro Computer, Inc.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250211136830/en/
Investor Relations Contact:
Nicole Noutsios
Stratos Advisors
email: ir@supermicro.com
Source: Super Micro Computer, Inc.
FAQ
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