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Super Micro Computer Launches $2 Billion Convertible Bond Offering as Shares Slide

The offering matures in 2030 with capped calls to limit dilution, financing further AI infrastructure development.

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Overview

  • Super Micro unveiled a $2 billion convertible bond sale on June 23, with bonds set to mature on June 15, 2030.
  • Up to $200 million of the proceeds will fund capped call transactions designed to reduce share dilution.
  • Initial investors can opt to purchase an extra $300 million in bonds within 13 days of issuance.
  • Shares dipped 5.3% to $42.92 despite a near 41% gain year-to-date, reflecting investor caution over dilution risks.
  • The bond proceeds will support general corporate needs and bolster growth in AI and cloud computing infrastructure following February’s SEC filing resolution and May’s $20 billion DataVolt agreement.