Wix.com Ltd. (WIX) was falling late Wednesday after announcing plans for a $350 million private placement of convertible senior notes due July 2023 to qualified institutional buyers.
The web-development company also expects to issue a 13-day option to underwriters to buy up to $52.5 million more of the notes to cover potential over-allotments.
The notes will be convertible at the investor’s option at any time prior to two days before maturing and can be convertible into cash, ordinary Wix shares or a combination of cash and stock.
Final terms of the notes, including the initial conversion price, coupon and other details will be determined shortly before the deal prices, the company said. Wix also plans to enter into several privately negotiated capped call transaction with one or more of the original buyers to reduce the potential dilution to existing investors if the notes are converted into stock.