Supermicro Wants To Raise $2 Billion Via Convertible Debt, Stock Falls On Dilution Concerns

Super Micro Computer (NASDAQ:SMCI) on Monday announced that it intends to raise $2 billion via debt by offering convertible senior notes due 2030.

The offering size is equivalent to 7.4% of the company’s market cap of $27.05 billion.

The company also expects to grant the initial purchasers an option to purchase up to an additional $300.0 million aggregate principal amount of the convertible notes within 13 days.

Also Read: Dell, Hewlett Packard, Super Micro Set To Benefit From Nvidia’s AI Chip Ramp

How Will $2 Billion Debt Be Used?

The convertible notes will accrue interest payable semi-annually in arrears and mature on June 15, 2030.

In connection with the pricing of the convertible notes, the company expects to enter into privately negotiated capped call transactions to manage the potential dilution of ...