Shares of Sphere Entertainment (NYSE: SPHR), owner of the Sphere in Las Vegas, dropped as much as 19.6% in trading on Tuesday after the company announced a new debt offering. The stock recovered by midday and was down 10.7% at 12:45 p.m. ET.

This morning, Sphere Entertainment announced it intends to offer $225 million in convertible senior notes due 2028 with the buyers getting the option to buy an additional $33.75 million. Details of the sale like yield and convert price weren't released and are subject to market conditions.

Management said the money would be used in part to buy capped calls, reducing any potential dilution from the conversion of debt into equity. Funds would also be used for general corporate purposes "including capital for Sphere-related growth initiatives."

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Source Fool.com