Shares have been volatile recently, soaring nearly 60% on Friday but have still dropped 35% over the past 3 months
Shares of Snap Inc. were falling in Tuesday morning trading after the social-media company disclosed that it plans a convertible-note offering.
Snap SNAP, -0.84% intends to offer $1.25 billion of convertible notes due in 2028 through a private placement. The company will give initial purchasers the option to purchase up to $200 million in additional notes.
The notes will be convertible at the option of the holder to common stock or a combination of cash and stock.
The company plans to use the proceeds of the offering for corporate purposes and to pay for the cost of capped call transactions related to the notes.
Shares of Snap are off 6.9% Tuesday. The stock has been volatile lately, having dropped 35% over the past three months even after it posted a 59% rise in Friday’s session on the heels of a better-than-expected earnings report.
In comparison, the S&P 500 index SPX, +0.84% has slipped 4.8% over the past three months.
