Take-Two stock drops 10% on note announcement
Publisher offers $120 million of convertible senior notes to fall due in 2014
Shares in Take-Two have fallen by 10.4 per cent to USD 8.54 following the company's announcement that it was to offer USD 100 million in convertible senior notes, to fall due in 2014.
The move, announced before the Nasdaq opened yesterday, prompted the stock collapse which cancelled out gains made the previous day - although the publisher subsequently announced an increase to the notes amount to USD 120 million after close following strong demand.
Each note will pay interest at 4.375 per cent annually, and can be converted in certain situations at a rate of 93.7 common shares per USD 1000 of notes.
Senior convertible notes tend to be popular because while the interest level offered is usually lower, they do give holders priority if the company enters bankruptcy.