⚡The strategy of MicroStrategy⚡
🌐 #MicroStrategy #Bitcoin business intelligence and development company has announced a plan for a private offering of $700 million of convertible senior notes, maturing in 2028.
✍🏻 The offering will be available to institutional investors pursuant to Rule 144A of the Securities Act, and will also offer purchasers the option to purchase an additional $105 million of these notes.
📁 These will be senior unsecured obligations of MicroStrategy with interest paid semi-annually, investors will have the option to convert them into cash, MicroStrategy Class A common stock, or a combination of both, and the terms will be determined at the time of pricing.
📉 The proceeds from the offering are expected to be used to redeem $500 million of the Company's existing 6.125% Senior Secured Notes due 2028. The remaining funds will be used to purchase additional Bitcoins.
📊 #MicroStrategy announced that on September 16, 2024, it issued a notice of redemption for its Senior Secured Notes. These notes will be redeemed on September 26, 2024 (the "Redemption Date") at a price of 103.063% of the principal amount, plus any accrued and unpaid interest to the Redemption Date.
🪙 The aggregate redemption amount is approximately $523.8 million. However, it is subject to the successful closing and settlement of the sale of the new notes. Once redeemed, all collateral attached to them will be released, including approximately 69,080 #Bitcoin
⚖️ The offering is subject to market conditions and its completion is not guaranteed. The bonds will remain private under the Securities Law and will not be offered for public sale.
