Akamai (AKAM) plans $2.2 billion of convertible notes four days after its banks raised its leverage limit

Key points Akamai plans $2.2 billion of convertible notes Akamai's lenders raised its leverage limit four days earlier Akamai's Anthropic contracts require investment up front Akamai Technologies (AKAM) plans to sell $2.2 billion of convertible notes to help fund its cloud infrastructure build-out and repay part of its existing debt, the company said on November 9. The proposed offering follows a change to Akamai's credit agreement. Four days earlier, its banks agreed to raise the company's leverage limit, giving it more room as it invests in cloud capacity. Akamai plans to issue $1.1 billion of notes due in 2028 and another $1.1 billion due in 2031. Initial purchasers have an option to buy up to $300 million more, and the offering depends on market conditions. The company disclosed the credit agreement change in the same filing. Shares fell 6.2% to $77.90 in premarket trading at 7:51 a.m. ET, from an $83.09 close on November 6.

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