A123 Systems (NASDAQ: AONE) Down In Premarket And Early Trading

News of a secondary equity offering combined with a convertible subordinated note offering has sent shares of A123 systems AONE lower. Shares in the company closed at $6.35 on 3/31 and are trading as low as $5.95 this morning on word of the proposed financing. The offering on the new financing comes at a 5.5 percent discount to the latest closing price. It is expected that the company will receive approximately $118 million from the offering. The equity offering will allow the company to increase funds available for general corporate purposes. The deal comes as the company trades through a fresh 52 week low of $6.27. As of 10:30 a.m. EST , 10.5M shares of the stock have changed hands with a last price of $6.08. Concurrently, with the stock offering, A123 is selling $125 million of convertible subordinated notes due 2016. These notes are being offered with a 3.75% interest rate. The Waltham, Mass based company is involved in the manufacture of lithium-ion batteries. Deutsche Bank Securities DB and Goldman Sachs & CoGS are acting as joint managers on the transaction that is expected to close on April 6th.