MicroStrategy to issue $700 million in convertible senior notes in private placement

According to official news, MicroStrategy announced that, subject to market conditions and other factors, the company plans to privately issue a total of $700 million convertible senior notes due in 2028 to qualified institutional buyers in accordance with Section 144A of the Securities Act of 1933 (as amended). MicroStrategy also expects to grant the initial purchasers of the notes an option to purchase up to $105 million in total principal of the notes within 13 days from the date of the first issuance of the notes. The issuance is subject to market and other conditions, and there is no guarantee whether, when or under what conditions the issuance will be completed. These notes will be MicroStrategy's unsecured senior debt, with interest paid semi-annually on March 15 and September 15 each year, starting on March 15, 2025. The notes will mature on September 15, 2028, unless repurchased, redeemed or converted in advance in accordance with their terms. The Notes will mature on September 15, 2028, unless earlier repurchased, redeemed or converted in accordance with their terms. Subject to certain conditions, on or after December 20, 2027, MicroStrategy may redeem all or part of the Notes for cash. The Notes will mature on September 15, 2028, unless earlier repurchased, redeemed or converted in accordance with their terms. Subject to certain conditions, on or after December 20, 2027, MicroStrategy may redeem all or part of the Notes for cash. If MicroStrategy redeems fewer than all of the Notes outstanding, the aggregate principal amount of the Notes outstanding must be at least $75 million as of the relevant redemption notice date. Holders of the Notes will have the right to require MicroStrategy to repurchase all or part of the Notes for cash on September 15, 2027. 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.