MicroStrategy Announces Redemption of $650 Million in Convertible Senior Notes
MicroStrategy Incorporated has recently announced its plans to redeem its 0.750% Convertible Senior Notes due 2025, totaling $650 million. If you are a note-holder, you have the option to convert your holdings into shares of MicroStrategy’s Class A common stock before the redemption date of July 15, 2024.
Redemption Details
- The redemption price for the notes will be 100% of the principal amount plus any accrued and unpaid interest up to the redemption date.
- Each $1,000 principal amount can be converted into 2.5126 shares of MicroStrategy’s Class A common stock at a conversion price of $397.99 per share.
- The conversion window is open until 5:00 p.m., New York City time, on July 11, 2024.
Conversion Procedure
To convert your notes into shares of MicroStrategy’s Class A common stock, follow these steps:
- Adhere to the procedures outlined in the indenture governing the Notes.
- Electronically present and surrender your notes through the facilities of the Depository Trust Company (DTC).
MicroStrategy will fulfill its conversion obligation using shares, supplemented by cash for fractional shares. Please note that this announcement is not an offer to buy or sell any Notes and may not be valid in jurisdictions where such transactions are prohibited by law.
Hot Take: What This Means for Your Investment
If you are a note-holder in MicroStrategy, the announcement of the redemption of $650 million in Convertible Senior Notes may have implications for your investment. Consider the following factors:
- Conversion opportunity: You have the option to convert your notes into shares of MicroStrategy’s Class A common stock.
- Share price: The conversion rate is based on a price of $397.99 per share, giving you a specific value for your conversion.
- Timing: The conversion window closes at 5:00 p.m., New York City time, on July 11, 2024, so act promptly if you wish to convert your notes.
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