Watch stocks you care about
Your own personalized stock watchlist!
It's a 100% FREE Motley Fool service...
Take-Two Interactive (NASDAQ: TTWO ) is looking to expand its capital base by $250 million. This comes in the form of an issue of five-year convertible senior notes in an underwritten public flotation. Additionally, the company's underwriters have been granted a 30-day purchase option for up to an additional $37.5 million worth of notes to cover over-allotments.
The notes will pay out interest on a semi-annual basis, at an annual rate of 1%. Their maturity date is July 1, 2018, and they will be convertible (at certain times, given certain conditions, until January 1, 2018) at an initial rate of 46.4727 shares of the firm's common stock per $1,000 principal amount of the notes. This represents a conversion price of $21.52 per share.
Take-Two said it plans to use some of the proceeds of the issue to redeem or pay the cash portion of an outstanding convertible notes issue maturing next year. The remaining funds will be utilized for "general corporate purposes," including potential acquisitions, debt retirement, and share repurchases.
The joint book-running managers of the offering are JPMorgan Chase's J.P. Morgan, Barclays, and the Securities arm of Wells Fargo (NYSE: WFC ) . The issue is expected to close on June 18.
Currently, Take-Two has around 86.4 million shares outstanding. Those shares currently trade at $15.50 apiece.