Why Merit Medical Systems Stock (MMSI) Is Falling

Merit Medical Systems Inc MMSI shares are trading lower by 9.5% to $66.89 Tuesday morning after the company announced it plans to offer $550 million in Convertible Senior Notes due 2029 to qualified institutional buyers. 

These notes, which accrue semiannual interest and can be converted to cash, Merit stock or a mix of both, will be senior unsecured obligations. The interest rate and other specifics will be determined upon pricing. 

The company intends to use part of the proceeds to cover costs and may engage in capped call transactions. 

The remaining funds will support various corporate purposes, potentially including debt repayment, sales, marketing, research, development and potential future acquisitions, although no specific commitments have been made regarding acquisitions at present.

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According to data from Benzinga Pro, MMSI has a 52-week high of $85.62 and a 52-week low of $62.58.