MicroStrategy Incorporated, a US-based company specializing in business intelligence, cloud-based services, and mobile software, has announced a significant achievement. According to a press release from the company, it has successfully completed a convertible-note offering totaling $800 million with a 2.25% coupon and a thirty-five percent conversion premium on its stock, MSTR.
The company stated that the total principal amount of the offering was approximately $800 million, which included $100 million in notes with a purchase option. The notes were sold through a private offering targeting eligible institutional purchasers under Rule 144A of the Securities Act of 1933.
MicroStrategy revealed that the notes carry an annual interest rate of nearly 2.25% and are unsecured, with semi-annual payment dates on the 15th of June and December starting from December 15th, 2024.
Unless repurchased, converted, or redeemed earlier, the notes will mature on June 15th, 2032. Note holders have the option to require the company to repurchase the notes on June 15th, 2029, or under certain circumstances, at a repurchase price equal to 100% of the principal amount.
The notes can be converted into cash or shares of MicroStrategy’s Class A stock, with an initial conversion rate of 0.4894 shares per $1,000 principal amount. MicroStrategy plans to use the net proceeds from the sale to purchase more Bitcoin and for general corporate purposes.
