MicroStrategy announces the pricing of $525 million convertible senior notes offering

ChainCatcher news, MicroStrategy founder Michael Saylor stated on social media that MicroStrategy Incorporated (NASDAQ: MSTR) ("MicroStrategy") today announced the pricing of its offering of $525 million of 0.875% convertible senior notes due 2024 ("Notes"). MicroStrategy also granted the initial purchasers of the Notes a purchase option to buy up to an additional $78.75 million of Notes within 13 days after the initial issuance date of the Notes. The size of this offering has been increased from the previously announced $500 million to $525 million. The offering is expected to close on March 18, 2024, subject to the satisfaction of customary closing conditions.

The Notes will be convertible, at MicroStrategy's option, into cash, shares of MicroStrategy's Class A common stock, or a combination of cash and shares of MicroStrategy's Class A common stock. Prior to September 15, 2030, the Notes will be convertible only upon the occurrence of certain events and during specified periods; thereafter, they will be convertible at any time on or after the second trading day prior to the maturity date.

The initial conversion rate for the Notes is 0.4297 shares of MicroStrategy Class A common stock per $1,000 principal amount, which corresponds to an initial conversion price of approximately $2,327.21 per share. The initial conversion price represents a premium of approximately 40% over the volume-weighted average price of MicroStrategy Class A common stock of $1,662.1999 during the period from 9:30 a.m. to 4:00 p.m. Eastern Daylight Time on March 14, 2024. The conversion rate will be adjusted upon the occurrence of certain events.