Did Investors Overreact to Infinera’s $200 Million Debt Offering?

Infinera's (NASDAQ: INFN) stock recently plunged after the optical solutions provider announced a new offering of $200 million in 2.5% convertible senior notes due in 2027. When the notes mature, every $1,000 in principal can be converted to cash, 130.5995 shares of Infinera's common stock (which translates to $7.66 per share), or a combination of both.

Infinera can also redeem the shares for cash on or after March 5, 2024, but only if its stock price rises to at least 130% of the conversion price for more than 20 trading days during a 30-day trading period. If that happens, the notes will be redeemed at 100% the principal amount plus accrued and unpaid interest. Infinera also granted its initial buyer a 13-day option to purchase an additional $30 million in notes.

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Source Fool.com