MicroStrategy, the leading business intelligence and Bitcoin development company, has It was announced Proposed private placement of $700 million in convertible senior notes due 2028. The offering will be made to institutional buyers under Rule 144A of the Securities Act. The Company also plans to grant an option to buyers to purchase an additional $105 million of notes.
Breaking News: MicroStrategy Raises $700 Million "For extras #Bitcoin" And redeem the senior secured bonds. pic.twitter.com/2VV9PMkEd6
— Bitcoin Magazine (@BitcoinMagazine) September 16, 2024
The Notes will be unsecured senior notes of MicroStrategy, pay semi-annual coupon and mature in September 2028. Holders of the Notes may convert them into cash, shares of MicroStrategy’s Class A common stock or a combination of the two, at the Company’s discretion. The terms of conversion will be determined at the time of pricing.
MicroStrategy intends to use the proceeds to redeem all of its existing $500 million 6.125% senior secured notes due 2028. The remaining proceeds will be allocated to purchase additional Bitcoin.
“On September 16, 2024, MicroStrategy issued a redemption notice pursuant to which the Senior Secured Notes will be redeemed on September 26, 2024 (the “Redemption Date”) at a redemption price equal to 103.063% of the principal amount, plus accrued and unpaid interest, if any, excluding the Redemption Date (approximately $523.8 million in aggregate), with the redemption of the Senior Secured Notes contingent upon the completion and settlement of the sale of the Notes,” MicroStrategy stated. “Upon redemption of the Senior Secured Notes, all collateral securing the Senior Secured Notes, including approximately 69,080 Bitcoin, will be released.”
The offering is subject to market conditions, and there can be no assurances as to the timing or conditions of completion. The Notes will not be available for public sale, and their status as private under the Securities Act is maintained.