Wayfair Inc W shares are trading lower Thursday after the company late Wednesday announced a proposed offering.
Wayfair announced that it intends to offer $600 million of convertible senior notes due 2027 in a private offering to qualified institutional buyers. The company also plans to grant the initial purchasers an option to purchase up to an additional $90 million of notes.
The notes will bear interest semi-annually and will mature on Sept. 15, 2027.
In connection with the pricing of the notes, the company expects to enter into privately negotiated capped call transactions with one or more of the initial purchasers.
Wayfair intends to use a portion of the net proceeds from the offering to pay the cost of the capped call transactions. The company also intends to use a portion of the net proceeds to repurchase for cash a portion of the 2024 Notes and 2025 Notes. The company intends to use the remaining net proceeds for working capital and general corporate purposes.
W Price Action: Wayfair has a 52-week high of $197.77 and a 52-week low of $43.31.
The stock was down 7.2% at $47.05 Thursday morning.
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