Latest news with #debtOffering
Globe and Mail
23-06-2025
- Business
- Globe and Mail
Why Super Micro Stock Is Sinking Today
Shares of Super Micro Computer (NASDAQ: SMCI) are falling on Monday, down 8.5% as of 3:30 p.m. ET. The jump comes as the S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) were both up 0.8%. Super Micro announced a new debt offering that sparked concerns of dilution. The sell-off made it the worst-performing stock in the S&P 500 today. Super Micro to raise $2 billion Super Micro announced it is raising $2 billion through a convertible note offering that matures in 2030. Only qualified institutional buyers can take part in the offering. The company plans to use the funds for "general corporate purposes, including to fund working capital for growth and business expansion." The move sparked fears of dilution, which usually follows a convertible note offering like this. In order to combat the dilution, the company will use $200 million to enter into capped call transactions. The move is commonly used to soften dilution, but investors clearly did not feel it would be enough. Super Micro has rebounded The company has seen its share of controversy, narrowly avoiding a Nasdaq delisting just months ago by refiling financials, replacing its CFO, and adding board members. It was the subject of a damning short report detailing financial irregularities and questionable business practices. Despite this, the company's stock has largely recovered as artificial intelligence (AI) giant Nvidia continues to rely heavily on the company, apparently unfazed by the allegations. Despite the implicit blessing of Nvidia's continued partnership, the track record of financial misconduct makes me nervous, and I would avoid the stock. Should you invest $1,000 in Super Micro Computer right now? Before you buy stock in Super Micro Computer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Super Micro Computer wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor 's total average return is994% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 23, 2025
Yahoo
20-06-2025
- Business
- Yahoo
Musk's xAI Sweetens Debt Offering as Investors Face Deadline
(Bloomberg) -- Elon Musk's artificial intelligence startup xAI Corp. offered investors sweeter pricing on its $5 billion debt offering Friday, the same day Morgan Stanley is wrapping up commitments for the deal. Security Concerns Hit Some of the World's 'Most Livable Cities' One Architect's Quest to Save Mumbai's Heritage From Disappearing JFK AirTrain Cuts Fares 50% This Summer to Lure Riders Off Roads NYC Congestion Toll Cuts Manhattan Gridlock by 25%, RPA Reports Taser-Maker Axon Triggers a NIMBY Backlash in its Hometown The package now includes $3 billion of bonds with a 12.5% yield, a $1 billion fixed-rate term loan with a 12.5% interest rate and a $1 billion term loan B priced at 7.25 percentage points over the benchmark rate at a discount of 96 cents on the dollar, according to a person familiar with the matter. Each of the components had been priced at lower rates and the term loan B had a smaller discount. Some investors expected the company would need to raise yields on the debt to close the deal. The offering launched earlier this month and has been impacted by Musk's fallout with US President Donald Trump, as well as investor concerns about xAI's financial wherewithal. The company decided to raise another $4.3 billion in equity and change some terms on debt documents to assuage those worries, Bloomberg previously reported. Commitments were originally due on Tuesday, but Morgan Stanley extended the time frame. Spokespeople for xAI and the bank did not immediately respond to requests for comment. Ken Griffin on Trump, Harvard and Why Novice Investors Won't Beat the Pros Is Mark Cuban the Loudmouth Billionaire that Democrats Need for 2028? The US Has More Copper Than China But No Way to Refine All of It Luxury Counterfeiters Keep Outsmarting the Makers of $10,000 Handbags Can 'MAMUWT' Be to Musk What 'TACO' Is to Trump? ©2025 Bloomberg L.P. Sign in to access your portfolio
Bloomberg
20-06-2025
- Business
- Bloomberg
Musk's xAI Sweetens Debt Offering as Investors Face Deadline
Elon Musk's artificial intelligence startup xAI Corp. offered investors sweeter pricing on its $5 billion debt offering Friday, the same day Morgan Stanley is wrapping up commitments for the deal. The package now includes $3 billion of bonds with a 12.5% yield, a $1 billion fixed-rate term loan with a 12.5% interest rate and a $1 billion term loan B priced at 7.25 percentage points over the benchmark rate at a discount of 96 cents on the dollar, according to a person familiar with the matter. Each of the components had been priced at lower rates and the term loan B had a smaller discount.
Yahoo
19-06-2025
- Business
- Yahoo
Bitdeer Technologies (BTDR) Falls 7% After $330-Million Debt Offer
We recently published a list of 10 Stocks Take A Shocking Nosedive. Bitdeer Technologies Group (NASDAQ:BTDR) is one of the worst-performing stocks on Thursday. Bitdeer Technologies fell by 7.13 percent on Wednesday to end at $11.8 apiece as investors unloaded portfolios following plans to raise $330 million in fresh funds through a debt offering. In a statement, Bitdeer Technologies Group (NASDAQ:BTDR) said that it plans to issue convertible senior notes to qualified institutional investors until June 23, 2025. The notes carry a yield rate of 4.875 percent to be paid semiannually on every January 1 and July 1 until 2031, unless earlier converted, redeemed or repurchased. According to Bitdeer Technologies Group (NASDAQ:BTDR), it would allocate $129.6 million of the proceeds to pay the cost of the zero-strike call option transaction which it entered into with an affiliate of one of the institutional investors. A construction team in a mining datacenter building work site with plans and equipment in hand. Meanwhile, some $36.1 million will be spent to pay the cash consideration for the concurrent note exchange transactions that it has entered into, while the remaining balance will be used for its data center expansion, ASIC based mining rig development, as well as working capital and other general corporate purposes. While we acknowledge the potential of BTDR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Bloomberg
13-06-2025
- Business
- Bloomberg
JPMorgan Readies $6.5 Billion Skechers Debt Sale for Next Week
JPMorgan Chase & Co. plans to kick off a $6.5 billion debt offering to support private equity firm 3G Capital 's purchase of footwear maker Skechers as soon as next week, according to a person with knowledge of the matter. The financing is expected to include $4 billion of secured debt and $2.5 billion of unsecured debt, the latter of which would allow for a 'payment-in-kind' feature with a toggle option, Bloomberg previously reported. The PIK component means the borrower can choose whether to pay interest in cash or by issuing more debt.
