Summary by Moomoo AI
On February 22, 2024, Super Micro Computer, Inc., a global leader in IT solutions, announced the pricing of a private offering of convertible senior notes due in 2029, with an aggregate principal amount of $1.5 billion. The offering, which is targeted at qualified institutional buyers, also includes an option for the initial purchasers to buy an additional $225 million in notes. The notes, which will not bear regular interest, have an initial conversion rate of 0.7455 shares per $1,000 principal amount, equating to an initial conversion price of approximately $1,341.38 per share. This is a 37.5% premium over the closing stock price on the day of the announcement. The company has also entered into capped call transactions to reduce potential dilution upon conversion of the notes. The offering is expected to close on February 27, 2024, with net proceeds estimated at $1.47 billion, or $1.70 billion if the additional notes are fully purchased. Super Micro Computer plans to use the proceeds for general corporate purposes, including working capital to support growth and business expansion.