Super Micro Computer, Inc. (NASDAQ: SMCI) announced the closing of its previously disclosed offering of $700 million in 2.25% Convertible Senior Notes due 2028. The notes, issued under an indenture dated February 20, 2025, are senior, unsecured obligations of the company and bear interest payable semi-annually. Proceeds from the offering will be used for general corporate purposes, including working capital and business expansion.

The notes are convertible into shares of common stock at an initial conversion rate of 16.3784 shares per $1,000 principal amount, equivalent to an initial conversion price of approximately $61.06 per share, reflecting a 50% premium over the reference price of $40.70. The conversion rate is subject to adjustment under certain conditions. Holders have the right to require repurchase of the notes in the event of a fundamental change.

Additionally, Super Micro amended its 2029 Convertible Notes through supplemental indentures, adjusting their interest rate to 3.50% and modifying conversion terms. These amendments were supported by holders of approximately 95% of the outstanding 2029 Notes. The company also entered into amendment agreements with capped call transaction counterparties to adjust economic terms.

Further details, including legal and contractual documentation, were filed with the SEC under Form 8-K.