MicroStrategy Incorporated made a significant announcement today via a press release, declaring its plan to fully redeem its 0.750% Convertible Senior Notes due 2025, amounting to $650 million. The company has set July 15, 2024, as the redemption date, offering note-holders the opportunity to convert their holdings into shares of MicroStrategy’s (MSTR) Class A common stock prior to this deadline.
Is converting the right move for you? Read on to find out the details and what this means for your investment.
Redemption Details
According to the press release, the redemption price for the notes will be 100% of the principal amount, plus any accrued and unpaid interest up to the redemption date.
Investors have the option to convert their notes into shares of MicroStrategy’s Class A common stock at a rate of 2.5126 shares per $1,000 principal amount. This conversion is based on a price of $397.99 per share. The conversion window remains open until 5:00 p.m., New York City time, on July 11, 2024.
Conversion Procedure
MicroStrategy has opted to satisfy its conversion obligation entirely in shares, supplemented by cash for fractional shares. Note holders wishing to convert their notes must adhere to the procedures outlined in the indenture governing the Notes. This process includes electronic presentation and surrender through the facilities of the Depository Trust Company (DTC).
It’s important to note that this announcement does not constitute an offer to buy or sell any Notes and may not be valid in jurisdictions where such transactions are prohibited by law.
