- Super Micro Computer, Inc. (SMCI, Financial) plans to offer $2.0 billion in convertible senior notes due in 2030.
- The company may also allow initial purchasers to acquire an additional $300 million in notes.
- Proceeds will support capped call transactions and general corporate purposes, including stock repurchases.
Super Micro Computer, Inc. (SMCI), a leading IT solutions manufacturer, announced its intention to offer $2.0 billion in convertible senior notes due 2030. The offering, aimed at qualified institutional buyers, is subject to market conditions and other factors. Additionally, the company plans to grant initial purchasers an option to buy up to $300 million in additional notes within 13 days of initial issuance.
The convertible notes, which will be senior unsecured obligations, are set to accrue interest and mature on June 15, 2030. Conversion of these notes is subject to specific conditions prior to December 17, 2029, and will be unrestricted thereafter. Supermicro (SMCI, Financial) will resolve conversions in cash, stock, or a combination thereof.
In conjunction with the notes pricing, Supermicro expects to engage in capped call transactions to mitigate dilution impacts on its common stock. Some proceeds will fund these transactions, while $200 million will be allocated for stock repurchases from note purchasers. Remaining funds will support general corporate purposes, including business expansion.
These transactions are not yet subject to Securities Act registration, and the company has cautioned about forward-looking statements that depend on market and business conditions. Supermicro is committed to advancing its infrastructure solutions across AI, cloud, storage, and 5G technologies.
