Why OPKO Health Stock Is Getting Hammered

OPKO Health Inc OPK shares are trading lower by 26.3% to $1.10 Thursday morning. The company on Wednesday announced a private offering of convertible senior notes due 2029.

What Happened?

OPKO Health plans a private offering of $200 million in Convertible Senior Notes due 2029, with an option for an additional $30 million. These notes will pay interest semiannually and mature on January 15, 2029, allowing holders to convert them under specific conditions.

The conversion could be settled in cash, company shares, or a mix of both at the company's discretion. Additionally, affiliated entities of key executives expressed interest in acquiring $70 million of these notes.

The company aims to use part of the proceeds to repurchase its common stock and some of its 4.50% Convertible Senior Notes due 2025. The remaining proceeds will be allocated for general corporate purposes.

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According to data from Benzinga Pro, OPK has a 52-week high of $2.24 and a 52-week low of $1.00.