Xerox shares dropped 9% after announcing a $300M convertible debt offering for refinancing and capped call transactions.

Xerox shares dropped 9% after announcing plans to offer $300M convertible senior notes to institutional buyers. Xerox intends to use proceeds from the debt offering to refinance some of its debt coming due and fund privately negotiated capped call transactions to reduce potential stock dilution. The company's Q4 sales fell 9.1% Y/Y, with equipment sales down 17.3% and guided FY24 revenue below consensus.

March 06, 2024
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