Akamai receives tenders of $39.9 million 5½% convertibles

New York, March 24 - Akamai Technologies, Inc. said it accepted $39.878 million principal amount of its 5½% convertible subordinated notes due 2007 in its cash tender offer for up to $101 million principal amount of the securities.

The Cambridge, Mass. distributed computing company will pay $1,012.50 per $1,000 principal amount.

The price is at the top end of the range it was accepting.

On March 10, Akamai amended the offer and extended the deadline to 9 a.m. ET on March 24.

It said it would accept tenders at prices between $1,000 and $1,012.50 per $1,000 principal amount in the modified dutch auction, up from $1,000 and $1,005 per $1,000 principal amount previously.

Before Akamai increased the maximum price it would pay, holders had tendered $5.2 million principal amount by the close of business on March 9, just before the old offer was to have expired.

Akamai originally announced the tender offer on Feb. 10.

As previously announced, the company will select the lowest price that will enable it to buy the $101 million of convertibles or the lowest price that will allow it to buy all notes tendered if the target size is not achieved. Akamai will pay the same price for all securities purchased. Akamai will also pay accrued interest up to but not including the date of payment.

The Cambridge, Mass., distributed computing company will fund the offer from available cash.

There is no minimum amount to complete the tender.

As of Feb. 10, Akamai had $201 million of the convertibles outstanding.

The Blackstone Group LP (866 800-8933 or call collect 212 583-5575) was dealer manager for the offer. Citigate Financial Services at (877 746-3583 or call collect at 201 499-3500) was the information agent, and U.S. Bank NA is the depositary.

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