Why Applied Optoelectronics Stock (AAOI) Is Nosediving

Applied Optoelectronics Inc AAOI shares are trading lower by 7.6% to $13.77 Thursday morning after the company announced a proposed private offering of $80 million of convertible senior notes due 2026.

What Happened?

Applied Optoelectronics plans to offer $80 million in Convertible Senior Notes due 2026, exempt from Securities Act registration. The terms will finalize upon pricing, with the Notes being senior, unsecured obligations. They can be converted under specific conditions, settled via cash, stock or a mix.

The proceeds will repurchase existing 5.00% Convertible Senior Notes due 2024 through private negotiations. The company says transactions may occur post-offering, impacting AAOI's stock trading price and the initial conversion price of the offered Notes.

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According to data from Benzinga Pro, AAOI has a 52-week high of $16.26 and a 52-week low of $1.60.