MicroStrategy Announces Private Offering of Senior Secured Notes Worth $400 Million

Enterprise analytics company MicroStrategy (listed as MSTR on Nasdaq) announced on Monday, June 7, 2021, its intention to make available senior secured notes amounting to about $400 million to institutions and buyers who qualify legally via a private offering.

The company claimed that the private offering would depend on market conditions. As such, the announcement does not come with any assurances about whether the offer will be completed, when that can happen and if at all it does.

About MicroStrategy

Established in 1989, MicroStrategy is a public corporation. Its headquarters is located in Tysons Corner, Virginia, Washington. As of May 20, 2021, the net worth of the company was about $4.36B.

It is registered as a part of the MicroStrategy Incorporated brand in the United States and several other countries. Its software, MicroStrategy Analytics, is a tool for performing business analytics.

The software has steadily been ranked as a leading company in business analytics. Much more, it is utilized by most admirable brands globally including several Fortune 500 companies.

Private Offering of Senior Secured Notes

Senior Secured Notes are bonds that must be repaid before most other debts should the issuer become bankrupt. The bonds are secured by the assets of the borrower. The offer and sale of this kind of bond cannot be registered based on the provisions of the Securities Act or the laws regulating securities in other territories

Also, the bonds cannot be placed on offer or put up for sales in the US except where an exclusion form is obtained, or in a business transaction not affected by the provisions of the Securities Act and relevant laws regulating securities in other territories. When an offering is planned, it must be done privately.

According to MicroStrategy, the bonds provided in the private offering will be completely and categorically secured on a senior secured basis by the company alongside several other subsidiaries of the company either established or acquired after the offer has been closed.

The secured notes and other related assets will be guaranteed on a senior secured basis with MicroStrategy’s current and future senior liability, by security interests on invariably all of MicroStrategy’s assets and the guarantor’s assets. This includes any crypto assets or other digital securities obtained during or after the offer has closed. This excludes any existing bitcoins owned by MicroStrategy.

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