What happened

Shares of Camtek (CAMT 0.19%), which makes inspection and metrology equipment for the semiconductor industry, tumbled Thursday after the company announced late Wednesday that it has proposed a private offering of $140 million in convertible senior notes. 

The tech stock fell by as much as 10.9% Thursday and was down by 7.9% as of 1:03 p.m. ET. 

So what 

The company said in a press release that the $140 million aggregate principal amount of the convertible senior notes would be due in 2026, and that it will use the net proceeds from the offering for "general corporate purposes."

Tweezers holding a microchip.

Image source: Getty Images.

Both large and small companies may, at times, raise money by selling convertible senior notes.

According to the release, the uses those funds may be put towards include "potential acquisitions, working capital, capital expenditures, investments, research and development and product development." 

Now what 

While investors appeared disappointed with Camtek's proposed private offering of the senior notes, the tech stock has performed exceptionally well over the past 12 months, rising by 118%.  

The company reported its third-quarter results on Oct. 27; revenue climbed 76% compared to the year-ago quarter, and non-GAAP net income soared 174%. Management also estimates that sales for the year will be up 70% from 2020. 

All of this means that Camtek investors may want to take Thursday's share price dip in stride and stay focused on the company's long-term outlook.