Super Micro Computer launches $3.75 billion preferred stock offering

Super Micro Computer Inc. (NASDAQ: SMCI) announced an offering of 75 million depositary shares, each representing a 1/20th interest in shares of Series A Mandatory Convertible Preferred Stock.

Each depositary share carries a liquidation preference of $50, while each full preferred share has a $1,000 liquidation preference. The preferred stock will convert automatically to common stock on a business day following June 1, 2029, based on the average volume-weighted average price of the company's common stock over a 20-day trading period.

Holders can convert their preferred shares to common stock at any time before June 1, 2029, at a minimum conversion rate. Dividends will be paid quarterly starting September 1, 2026, and ending June 1, 2029, at an unspecified annual rate on the $1,000 liquidation preference.

The company stated it may pay declared dividends in cash, common stock, or a combination of both. Computershare Trust Company will serve as the depositary bank under a deposit agreement.

Super Micro Computer is conducting concurrent financing transactions including a $1.25 billion public offering of common stock with a potential additional $187.5 million through an underwriter option. The company also plans to establish an at-the-market program allowing sales of up to $2 billion in common stock.

The closings of these offerings are not conditioned upon each other, according to the company's statement.

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