#United States #Plano #Convertible Notes #Alkami Technology #MANTL

Alkami Technology Unveils $300 Million Convertible Senior Notes Offering

In an important development for its future growth, Alkami Technology, Inc. (Nasdaq: ALKT) confirmed its plans to issue a $300 million offering of convertible senior notes. This offering is aimed at qualified institutional buyers and is structured in compliance with Rule 144A under the Securities Act of 1933.

This initiative represents a strategic move by Alkami, a notable player in providing cloud-based digital banking solutions for financial institutions across the United States. The company intends to utilize the proceeds from this offering for various objectives, including funding the acquisition of Fin Technologies, Inc., commonly known as MANTL. This acquisition is significant for expanding Alkami's footprint in the financial technology sector.

Key Details of the Offering

The convertible senior notes are set to mature by March 15, 2030, contingent upon market conditions. Interest on these notes will be payable semi-annually in arrears. Notably, the offering includes a provision allowing initial purchasers to buy an additional $45 million worth of notes under specific conditions within a 13-day timeframe from issuance.

Investors who purchase these notes will have the right to convert them into cash, shares of common stock, or a combination of both, depending on various circumstances outlined by Alkami. It is worth noting that the company has established a strategy to redeem these notes for cash after certain conditions are met, which include the company's stock price exceeding a specific threshold relative to the conversion price.

Use of Proceeds

The primary goal of the capital raised from the offering is to finance the capped call transactions necessary for minimizing potential dilution of common stock, particularly upon conversion of the notes. Any remaining funds will be allocated for general corporate purposes. It is important to point out that this offering's completion is not reliant on the MANTL acquisition’s closure, however, Alkami has expressed confidence in finalizing this strategic purchase.

With the anticipated growth in digital banking, this $300 million offering positions Alkami to strengthen its operational capabilities. The company's planned short-term financial maneuvers aim to ensure that it remains competitive in the rapidly evolving financial technology landscape.

Forward-Looking Statements

As Alkami embarks on this initiative, it recognizes the inherent uncertainties in any forward-looking statements regarding financial outcomes, completion timelines, and strategic implementation. Many external factors could potentially influence outcomes, including market conditions, competitive pressures, and operational challenges.

Management has emphasized their commitment to transparency as they navigate these complexities. Despite the uncertainties, the overarching strategy points toward a robust expansion and an evolving service offering that aims to meet the demands of financial institutions.

Conclusion

In conclusion, Alkami Technology's launch of a $300 million convertible senior notes offering is a significant step towards realizing its growth ambitions in today's competitive financial services environment. The move not only reflects the company's proactive approach to financing but also sets the stage for future investments aimed at digital banking innovation, particularly with the anticipated acquisition of MANTL. Investors, analysts, and industry observers will be keen to watch how this plays out and how it impacts Alkami's market position in the coming years.