Supermicro raised $2 billion through private convertible notes with 35% conversion premium.

From Yahoo Finance: 2025-06-24 09:39:00

Super Micro Computer (NASDAQ: SMCI) priced $2 billion convertible senior notes due 2030. Stock recovered after 9.7% fall on Monday. Concerns over stock dilution arose with convertible notes offering. $300 million more may be available within 13 days. Company plans capped call transactions to limit dilution for shareholders.

Supermicro set an initial conversion rate of 18.1154 shares per $1,000 of notes, with a conversion price of $55.20 per share. Redemption possible starting June 15, 2028, if stock price exceeds 130% of conversion price. Net proceeds expected to be $1.96 billion. Company to allocate funds for capped call transactions and stock repurchase.

Company may establish more capped call agreements if additional $300 million in notes is sold. Stock lost 51% in the last 12 months due to accusations of accounting manipulation and sanctions evasion, but was cleared in an independent review. Stock surged over 36% year-to-date. Partnered with DataVolt for hyperscale AI campuses in Saudi Arabia. Plans to expand server production capacity in states like Mississippi and Texas.

SMCI shares were trading higher by 1.17% to $41.37. Supermicro raises $2 billion via private convertible debt with a 35% conversion premium.

Read more: Supermicro Raises $2 Billion Via Private Convertible Debt With 35% Conversion Premium