Shares of BroadSoft (BSFT) were down Thursday after the software company priced its offering of $175 million aggregate principal amount of 1% convertible senior notes due 2022.
The notes will be offered to qualified institutional buyers in a private sale expected to close on Sept. 15. Initial buyers will have a 30-day option to acquire up to an additional $25.3 million aggregate principal amount of notes.
The notes will mature on Sept. 1, 2022 unless converted earlier. The initial conversion rate is set at 25.8249 shares per $1,000 of notes, equal to a conversion price of approximately $38.72 per share.
BroadSoft said it expects net proceeds of $169.3 million from the offering. The company said it will use a portion of the proceeds to repurchase $51 million principal amount of its 1.5% convertible senior notes due 2018, to buyback common shares from note purchasers and for general corporate purposes.
BSFT was down over 2% in recent afternoon trade, still moving above the midpoint of the 52-week range of $19.12 to $38.83.
Companies: BroadSoft, Inc.
Price: 30.80 Price Change: -0.81 Percent Change: -2.56