“MicroStrategy will issue $700 million in four-year senior unsecured convertible notes to “acquire additional bitcoins and fund general corporate purposes.” MicroStrategy Announces Proposed Private Offering of $700M of Convertible Senior Notes $MSTR https://t.co/OCq7wj2u0P — Michael Saylor⚡️ (@saylor) September 16, 2024 $500 million of the raised funds will be used to repay the remaining principal amount of MicroStrategy Senior Secured Notes due 2028 and […]”, — write: businessua.com.ua
MicroStrategy to Place $700M Four-Year Senior Unsecured Convertible Notes to “Purchase Additional Bitcoin and Fund general corporate goals”.
MicroStrategy Announces Proposed Private Offering of $700M of Convertible Senior Notes $MSTR https://t.co/OCq7wj2u0P
— Michael Saylor⚡️ (@saylor) September 16, 2024
$500 million of the proceeds will be used to repay the remaining principal amount of MicroStrategy’s senior secured notes due 2028 with a coupon rate of 6.125%.
The current issue includes an option for an additional placement of $105 million.
The coupon period is 182 days.
The bonds mature on September 15, 2028, unless they are redeemed or converted early. The company may redeem all or any portion of the issue for cash on or after December 20, 2027, subject to certain conditions.
Holders will have the right to require MicroStrategy to repurchase all or any portion of their securities on September 15, 2027.
At maturity, holders may convert the notes into cash, MicroStrategy Class A common stock or a combination thereof at the option of the issuer.
The interest rate, the initial conversion factor and other conditions will be determined at the time of setting the placement price.
The current issue will be placed as part of a private offering to qualified institutional investors, depending on market conditions and other factors.
MicroStrategy previously used a similar tool in March and June 2024. Then the company placed two issues of convertible bonds for $600 million and $500 million, and raised $700 million in the second case.
As a reminder, the firm’s balance sheet has 244,800 BTC in the amount of ~$14.33 billion at the current exchange rate. MicroStrategy last bought 18,300 BTC in September 2024.
In August, the founder of the company, Michael Saylor, said that he personally owns more than $1 billion worth of digital gold.
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