September 17, COINOTAG news has reported that according to official announcements, MicroStrategy® Incorporated (Nasdaq: MSTR) intends to issue $700 million in total principal convertible senior notes due in 2028. Tailored for qualified institutional buyers, this issuance aligns with Section 144A of the amended Securities Act of 1933. Additionally, the company will grant initial purchasers the option to acquire an additional $105 million in total principal within 13 days of the initial issuance. The issuance remains contingent on market conditions and other relevant factors.
The convertible senior notes, categorized as unsecured senior debt, will accrue interest payable semi-annually starting March 15, 2025, continuing each March 15 and September 15. Maturity is set for September 15, 2028, unless they are repurchased, redeemed, or converted earlier as per the terms specified. From December 20, 2027, onward, MicroStrategy holds the option to redeem some or all of the notes for cash under predefined conditions. The outcome of this issuance remains uncertain and subject to overarching market dynamics.
Read more on: MicroStrategy Announces Proposed Private Offering of $700 Million of Convertible Senior Notes