Alphatec Holdings Inc. (ATEC) stock plunged 9.54% in after-hours trading on Monday, following the company's announcement of a proposed offering of $300 million convertible senior notes due in 2030.
The medical device firm plans to offer the convertible bonds in a private placement to institutional investors. The company intends to use a portion of the net proceeds to pay for capped call transactions, repurchase a portion of its outstanding 0.75% convertible notes due 2026, and use the remainder for general corporate purposes.
The market reacted negatively to the news, as convertible debt offerings can lead to potential equity dilution for existing shareholders when the notes are converted into shares. Additionally, the issuance of new debt increases the company's financial leverage and interest expenses, which may raise concerns about its future cash flows and profitability.
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。