According to ChainCatcher, MicroStrategy announced the pricing of its convertible senior notes due in 2028, with a total principal amount of $875 million, an increase from the previously announced $700 million total principal note issuance. These notes will be MicroStrategy's unsecured senior debt with an interest rate of 0.625% per year, payable semi-annually on March 15 and September 15 of each year, starting from March 15, 2025.
The notes will be sold in a private placement to institutional buyers MicroStrategy believes reasonably to be qualified, and MicroStrategy has granted the initial purchasers of the notes an option to purchase up to $135 million aggregate principal amount of the notes within 13 days from the date of the initial issuance of the notes. In addition, the offering is expected to close on September 19, 2024, subject to the satisfaction of customary closing conditions.
MicroStrategy intends to use the net proceeds from the offering to redeem all of the outstanding $500.0 million aggregate principal amount of MicroStrategy’s 6.125% Senior Secured Notes due 2028 (the “Senior Secured Notes”) and to use any balance of the net proceeds to purchase additional bitcoin and for general corporate purposes.
