According to BlockBeats, MicroStrategy announced the pricing of its issuance of $700 million in 2.25% convertible senior notes due in 2032. The notes will be sold in a private placement to qualified institutional investors who reasonably believe that they meet the requirements of Section 144A of the Securities Act of 1933. MicroStrategy also granted the initial purchasers of the notes the option to exercise the purchase right within 13 days from the first issuance date of the notes, including that date, up to a total purchase amount of an additional $100 million in notes.
The offering amount is increased to $700 million from the previously announced $500 million in aggregate notes. The offering is expected to close on June 17, 2024, subject to satisfaction of customary closing conditions.
The conversion ratio for the Notes will initially be 0.4894 shares of MicroStrategy Class A common stock per $1,000 principal amount of the Notes, representing an initial conversion price of approximately $2,043.32 per share. The initial conversion price for the Notes represents a premium of approximately 35% to the U.S. composite volume weighted average price of MicroStrategy Class A common stock between 9:30 a.m. and 4:00 p.m. Eastern Daylight Time on June 13, 2024, which was $1,513.46. The conversion ratio will be subject to adjustment upon the occurrence of certain events.