Snap Inc SNAP is trading lower Tuesday morning after the company announced a proposed private offering of $1.25 billion of convertible senior notes due 2028.
Snap intends to offer the convertible senior notes in a private placement to qualified institutional buyers. Snap also intends to grant the initial purchasers of the notes an option to purchase up to an additional $200 million aggregate principal amount of notes.
Snap said it plans to enter into capped call transactions with one or more of the initial purchasers of the notes. The capped call transactions will cover the number of Snap shares that will initially underlie the notes, which is expected to reduce potential dilution to shareholders.
Snap intends to use the net proceeds from the offering for general corporate purposes and to pay the cost of the aforementioned capped call transactions.
See Also: 21 Stocks Moving in Tuesday's Pre-Market Session
SNAP Price Action: Snap has traded as low as $24.32 and as high as $83.34 over a 52-week period.
The stock was down 4.38% at $36.22 at time of publication.
Photo: rswebsols from Pixabay.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
