Super Micro Computer, Inc. (NASDAQ:SMCI) shares are trading lower Friday after the company announced a private offering of convertible senior notes. Here's a look at what's going on.
What To Know:
Super Micro announced the pricing of $1.5 billion aggregate principal amount of convertible senior notes due 2029 early Friday. The convertible notes have an initial conversion rate of 0.7455 shares of the company’s common stock per $1,000 principal amount of convertible notes, equivalent to an initial conversion price of approximately $1,341.38 per share, representing an initial conversion premium of approximately 37.5% above the closing price of $975.52 per share of the stock on Feb. 22.
The company also granted a 13-day option to the initial purchasers to purchase up to an additional $225 million aggregate principal amount of the convertible notes.
Super Micro Computer shares took off at the end of January following a better-than-expected earnings ...