Super Micro Computer (NASDAQ:SMCI) stock is losing nearly 6% in early pre-market trading on Friday, after the company priced a potentially dilutive $1.5B offering of convertible senior notes.
The notes, due 2029, were sold to “qualified institutional buyers,” and have an initial conversion rate of 0.7455 common shares per $1,000 principal amount of Convertible Notes, equivalent to a price of approximately $1,341.38 per common share.
The exact conversion rate and conversion price are subject to adjustment upon the timeline and occurrence of certain events.
SMCI will receives $1.47B in net proceeds, and intends to use most of it "for general corporate purposes, including to fund working capital for growth and business expansion."
Shares of SMCI closed at $975.52 yesterday, and are up over 240% YTD.