Why Cutera Stock Is Falling Sharply Thursday

Cutera, Inc. CUTR shares are trading lower by 12.57% to $43.42 Thursday morning after the company announced pricing of an offering of $100 million of convertible senior notes.

What Happened?

Cutera says the company estimates that the net proceeds from the offering will be approximately $96.4 million (or approximately $115.8 million if the initial purchasers exercise their option to purchase additional notes in full), after deducting the initial purchasers' discounts and estimated offering expenses payable by Cutera.

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Cutera also intends to use approximately $20.8 million of the net proceeds to pay the aggregate cost of the capped call transactions described below. If the initial purchasers exercise their option to purchase additional notes, Cutera expects to use a portion of the net proceeds from the sale of such additional notes to enter into additional capped call transactions.

The company intends to use the remainder of net proceeds from the offering for general corporate purposes, which may include placements of AviClear, working capital, capital expenditures and potential acquisitions and strategic transactions, potential repurchases of its common stock and potential repurchases or exchanges of its existing convertible senior notes.

According to data from Benzinga Pro, CUTR has a 52-week high of $74.38 and a 52-week low of $31.62.