MicroStrategy Announces Pricing Of Offering Of Convertible Senior Notes Due 2028

(RTTNews) - MicroStrategy Inc. (MSTR) announced Wednesday the pricing of its offering of $875 million in 0.625% convertible senior notes due in 2028. Earlier, the company was planning to offer $700 million.

The notes will be sold to qualified institutional buyers.

The company has allowed the initial purchasers of the notes the option to acquire an additional $135 million.

The notes will mature on September 15, 2028, with a conversion rate set at 5.4589 MicroStrategy Class A common stock shares for every $1,000 principal amount, translating to a conversion price of $183.19 per share.

MicroStrategy intends to utilize the net proceeds, estimated at $864.1 million, to redeem all $500 million of its 6.125% Senior Secured Notes due 2028, as well as to purchase more bitcoin, and for general corporate purposes.

The closing of the offering is anticipated for September 19, 2024.