Summary by Futu AI
Fastly announced the issuance of $150 million in 7.75% convertible senior notes due 2028 on December 5, 2024. The company will use the proceeds to repurchase approximately $157.9 million of its existing 0.00% convertible senior notes due 2026. The new notes have an initial conversion rate of 50.6586 shares per $1,000 principal, equivalent to a conversion price of $19.74 per share.The 2028 notes will accrue interest at 7.75% per annum, payable semi-annually, and mature on June 1, 2028, unless earlier converted or repurchased. Fastly will have the option to settle conversions in cash, stock, or a combination. The repurchase of existing notes will reduce their outstanding principal to about $188.6 million.J. Wood Capital Advisors, Fastly's financial advisor, plans to purchase approximately 1.3 million shares of Fastly's common stock concurrently with the transactions. These purchases could impact the market price of Fastly's stock or the new notes. The transactions are expected to close on December 5, 2024, subject to customary conditions.
