Why ZTO Express Stock Plummeted Today
Investors in Chinese logistics specialist ZTO Express (NYSE: ZTO) weren't on the fast track to wealth on Wednesday. The price of the company's American Depositary Shares (ADSes) sagged by more than 9% on the day, following news of a new round of capital raising.
ZTO Express unveiled a proposed offering of $870 million worth of convertible senior notes. These securities, which are debt instruments that investors can convert into stock under certain conditions, are to mature on Sept. 1, 2027.
ZTO added that it aims to grant the initial purchaser of the notes an option to purchase as much as $130 million worth of additional notes. It did not identify whom or what this purchaser might be.
Source Fool.com
