What's Going On With Unity Software Shares Tuesday?

Unity Software Inc U shares are trading lower Tuesday. The company announced the pricing of an upsized offering late Monday.

What To Know: Unity Software shares traded lower on Monday after the company announced plans to offer $500 million of convertible senior notes due 2030 in a private placement to institutional investors.

After the market close on Monday, Unity priced an upsized offering of $600 million of 0% convertible senior notes. The company also granted the initial purchasers a 13-day option to purchase up to an additional $90 million of the notes.

The offering is expected to close on Feb. 27. Unity expects to use the net proceeds from the offering to pay the cost of the capped call transactions and to repurchase its 0% convertible senior notes due 2026.

The offering comes about a week after Unity reported fourth-quarter financial results. Unity delivered revenue of $457 million versus estimates of $433.17 million, and an earnings loss of 30 cents per share versus estimates for a loss of 37 cents per share.

Unity said it had approximately $1.53 billion in cash, cash equivalents and restricted cash as of Dec. 31.

U Price Action: Unity Software shares were down 7.84% at $25.14 at the time of publication Tuesday, according to Benzinga Pro.

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