Unity Software Inc.'s stock, trading under the ticker symbol U, plummeted 5.04% intraday on Tuesday, underperforming the broader market. The decline followed the company's announcement of pricing a $600 million convertible bond offering.
The video-game software maker disclosed late Monday the pricing of its offering of $600 million in 0% convertible bonds due 2030. The initial conversion price of $36.15 represents a 32.5% premium over the stock's closing price on Monday. The news may have raised concerns among investors about potential dilution and pressure on the stock price.
Unity Software's shares had surged around 30% on Thursday after the company reported better-than-expected fourth-quarter results and revealed plans to roll out its new AI advertising algorithm by the end of the current quarter. However, the convertible bond deal appears to have reversed some of those gains, leading to the intraday plummet.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.