Super Micro (SMCI) Drops 9.77% on New $2-Billion Debt Issuance

Super Micro Computer, Inc. (NASDAQ:SMCI) is one of the These 10 Stocks Took A Shocking Fall.

Super Micro slashed its share prices by 9.77 percent on Monday to finish at $40.89 apiece following plans to raise $2 billion through a debt issuance.

In a statement, Super Micro Computer, Inc. (NASDAQ:SMCI) said that it intends to issue convertible senior notes due 2030 to qualified institutional buyers.

The company also expects to grant an option to the initial purchasers to purchase up to an additional $300 million aggregate principal amount within a 13-day period from and including the date the convertible notes are first issued.

Super Micro Computer, Inc. (NASDAQ:SMCI) said that the convertible notes will be senior, unsecured obligations and will accrue interest payable semi-annually in arrears.

The notes will mature on June 15, 2030, unless earlier redeemed, repurchased, or converted.

According to Super Micro Computer, Inc. (NASDAQ:SMCI), proceeds from the offer will be used to fund the cost of entering into the capped call transactions, while $200 million will be for a share buyback program. The remainder will be used for general corporate purposes, including to fund working capital for growth and business expansion.

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Disclosure: None. This article is originally published at Insider Monkey.