03:30 AM EDT, 06/24/2025 (MT Newswires) -- Super Micro Computer ( SMCI ) said Tuesday it priced a private placement to qualified institutional buyers of $2 billion principal amount of convertible senior notes due 2030.

The initial purchasers have been granted a 13-day option to purchase up to $300 million additional amount of notes.

The notes will be convertible at an initial rate of $55.20 per share.

Net proceeds, estimated to be about $1.96 billion to $2.26 billion, will be used to fund certain capped call transactions, share repurchases, and for general corporate purposes, the company said.

Closing of the offering is expected to occur on June 26, subject to customary closing conditions.

The company also said it plans to repurchase about 4.9 million common shares using $200 million of the net proceeds from the offering.