Why LivePerson Stock Tanked Today
Shares of LivePerson (NASDAQ: LPSN) tanked by 10% today after the company announced a proposed private offering of convertible senior notes. LivePerson is looking to raise $450 million in fresh capital from qualified institutional investors, who will also have an option to purchase an additional $67.5 million in notes.
The offering has not yet priced, so key details such as the interest rate, conversion rate, and offering price have not been determined. The deal is not open to public investors and the notes are only being offered to institutional investors. LivePerson, which provides conversational commerce technology to enterprise customers, is also entering into capped call transactions that are designed to mitigate dilution associated with potential conversions of the notes.
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Source Fool.com
