YY Stock Dips 3% After Closing $1 Billion Offering of Notes

The Chinese social media platform is planning to use the proceeds for global development, video-based content offering, and technology, as well as general purposes.

Author: CapitalWatch Staff   

The stock in YY Inc. (Nasdaq: YY) was trading down nearly 3 percent, at $68.60 per American depositary share, after the company announced the closing of its offering of convertible senior notes worth $1 billion.

The Guangzhou-based company, a popular social media platform, said $500 million in notes due 2025 and the same amount with the due year 2026 have been purchased. That included the optional purchase of an additional $75 million in notes of each series.

YY said it has entered into capped call transactions on the notes offering, which is meant to reduce the potential dilution to existing holders of the ADSs, as well as the potential fluctuation in the market price of ADSs. The cap price was set at $127.87 per ADS, representing an upside of 80 percent to the closing price as of June 19.

The company, which focuses on livestreaming on its interactive platform, announced it sought to enter into convertible debt of $850 million last week. It said it intends to use the proceeds for global development, video-based content offering, and technology, as well as general purposes.

YY said the notes were sold in the United States, as well as overseas.


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