Fastly, Inc. (FSLY) saw its stock price drop sharply by 5.21% during the intraday session on Friday. This significant decline followed the company's announcement of an upsized $160 million convertible senior notes offering.
The offering, which was increased from the initially planned $125 million, is set to mature in 2030. Fastly plans to use the net proceeds to fund capped call transactions and repurchase $150 million of its outstanding convertible notes due in 2026. The issuance of convertible notes often leads to shareholder dilution, which can negatively impact the stock price in the short term.
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