Akamai Announces Closing of $2.5 Billion Offering of Convertible Senior Notes
Key Highlights
- ➤Akamai closed $2.5 billion convertible notes offering, split evenly between 2028 and 2031 maturities
- ➤Net proceeds totaled approximately $2,459.7 million after discounts and estimated offering expenses
- ➤Akamai plans to repay 2027 convertible notes and fund Cloud Infrastructure Services capital expenditures
- ➤Management expects significantly higher EBITDA margins and operating cash flow beginning in 2027
- ➤Convertible note hedges may reduce conversion dilution, while warrants could separately dilute shares
Expert Statements
Ed McGowan, Executive Vice President and Chief Financial Officer of Akamai Technologies
“Securing this capital on attractive terms demonstrates the market’s confidence in our strategic direction and the durability of our business model.”
Ed McGowan, Executive Vice President and Chief Financial Officer of Akamai Technologies
“With our balance sheet and substantial liquidity, we are well positioned to execute on our existing customer commitments, address our outstanding debt maturities, and prudently fund the continued expansion of our Cloud Infrastructure Services business while maintaining a disciplined approach to capital allocation.”
Ed McGowan, Executive Vice President and Chief Financial Officer of Akamai Technologies
“As revenue from our committed Cloud Infrastructure Services contracts ramps, we expect to see a significant increase in EBITDA margins and cash from operations beginning in 2027, with further improvement expected in 2028.”
Ed McGowan, Executive Vice President and Chief Financial Officer of Akamai Technologies
“We believe this increased cash generation will enhance our ability to self-fund future investments from organic cash flow, reduce leverage over the long term, and support our investment-grade profile.”
CAMBRIDGE, Mass., Nov. 12, 2026 (GLOBE NEWSWIRE) -- Akamai Technologies, Inc. (Nasdaq: AKAM) (“Akamai”) today announced that it has closed its previously announced private offering of $1.25 billion in aggregate principal amount of 1.00% convertible senior notes due 2028 (the “2028 Notes”) and $1.25 billion in aggregate principal amount of 1.00% convertible senior notes due 2031 (the “2031 Notes” and, together with the 2028 Notes, the “notes”) to persons reasonably believed to be “qualified institutional buyers” pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The aggregate principal amount of each series of notes includes $150.0 million issued pursuant to the initial purchasers’ exercise in full of their option to purchase additional notes of that series.
“Securing this capital on attractive terms demonstrates the market’s confidence in our strategic direction and the durability of our business model,” said Ed McGowan, Akamai’s Executive Vice President and Chief Financial Officer. “With our balance sheet and substantial liquidity, we are well positioned to execute on our existing customer commitments, address our outstanding debt maturities, and prudently fund the continued expansion of our Cloud Infrastructure Services business while maintaining a disciplined approach to capital allocation.”
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