Why the Marcus Corporation's Shares Plunged 34.6% on Thursday
Shares of the Marcus Corporation (NYSE: MCS) fell as much as 34.6% in trading Thursday after the theater and hotel company announced a big debt offering. At 3:15 p.m. EDT today, shares were still down 33.4% for the day and not showing any signs of recovering.
Management announced today that it's launching an $87 million convertible-note offering, which could grow to $100 million if underwriters exercise their overallotment option. Proceeds will be used in part to buy a capped-call transaction to limit the potential dilution of shares. The rest will be used to pay down the company's revolving credit facility.
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Source Fool.com
