Akamai Technologies Inc. (NASDAQ: AKAM) announced a proposed offering of $2.6 billion in convertible senior notes, consisting of $1.3 billion in notes due 2030 and $1.3 billion in notes due 2032.

The cybersecurity and cloud computing company plans to sell the 0% convertible senior notes exclusively to qualified institutional buyers under Rule 144A of the Securities Act of 1933. Initial purchasers will receive an option to buy an additional $200 million of each series of notes under the same terms.

The 2030 notes will mature on May 15, 2030, while the 2032 notes will mature on May 15, 2032, unless converted or repurchased earlier. The notes will not bear regular interest and will not accrete in principal amount. Any special interest will be paid semi-annually on May 15 and November 15.

Upon conversion, Akamai will pay cash up to the aggregate principal amount and may pay cash, shares of common stock, or a combination for any excess conversion obligation. The conversion rate, offering price and other terms will be determined at pricing.

Akamai intends to use net proceeds primarily to fund accelerated capital expenditure requirements for its Cloud Infrastructure Services business, focusing on global footprint expansion. The company plans to allocate approximately $350 million for share repurchases from note purchasers in privately-negotiated transactions.

The company expects to enter into convertible note hedge and warrant transactions with initial purchasers or affiliates to reduce potential dilution from conversions. These counterparties may purchase Akamai shares or enter derivative transactions, which could affect the stock price and notes.

The offering is subject to market conditions and other factors, according to the company's statement.