Why Shares of IMAX Plunged 12.6% Today

Shares of IMAX Corporation (NYSE: IMAX) dropped as much as 12.6% on Tuesday after the company announced a big debt offering. The stock continues to trade sharply lower and was off 11.7% at 12:55 p.m. EDT.

Management announced a proposed convertible senior note offering after the market closed yesterday and that's what investors are reacting to. The initial proposal is to sell $200 million of debt that could be converted into cash or stock in the future. Details around conversion or the price of the offering won't be known until this deal is priced by the market but the notes are expected to be due in April 2026.

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Source Fool.com