Akamai increases offer price in tender for 5½% convertibles

New York, March 10 - Akamai Technologies Inc. said it has increased the maximum price it will pay in its tender offer for up to $101 million principal amount of its 5½% convertible subordinated notes due 2007 and extended the deadline.

Akamai will now 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.

The expiration date is now 9 a.m. ET on March 24, pushed back from 9 a.m. ET on March 10.

By the close of business on March 9, holders had tendered and not withdrawn $5.2 million principal amount of the convertibles.

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.

If the offer is oversubscribed, tenders will be pro rated.

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) is dealer manager for the offer. Citigate Financial Services at (877 746-3583 or call collect at 201 499-3500) is the information agent, and U.S. Bank NA is the depositary.

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