Bill.com to issue $ 1.5 billion in equity and debt; Fall in shares
Bill.com (INVOICE) – Get the report from BILL.com Holdings Inc. Stocks stumbled on Tuesday, after the billing software provider announced it was issuing $ 1 billion in stocks and $ 500 million in convertible debt.
Cloud-based financial back-office software provider’s stock should be publicly accessible, while debt is intended for qualified institutional investors. Issuing capital often hurts a company’s stock because it dilutes current shareholders and can be a sign of financial weakness. Bill.com has a market capitalization of $ 26 billion.
Bill.com traded at $ 266.08 on Tuesday, down 6.2% the last check.
As for the share offering, “Bill.com intends to use the net proceeds for general corporate purposes, which may include working capital, capital expenditures, and strategic acquisitions and transactions. potential, âthe company said.
The debt offering consists of convertible senior notes due 2027.
âBill.com intends to use a portion of the net proceeds to pay for the cost of capped call transactions,â which may reduce stock dilution.
The remainder of the proceeds are intended for “general business purposes, which may include working capital, capital expenditures, and potential acquisitions and strategic transactions.”
In other financial services news Tuesday, US Bancorp (Usb) – Get the Bancorp report from the United States agreed to pay $ 8 billion cash and shares for MUFG Union Bank, the US unit of Japanese company Mitsubishi UFJ Financial (MUFG).
The transaction will increase US Bancorp’s focus on California, Washington and Oregon, he said.
The $ 8 billion includes $ 5.5 billion in cash and 44 million shares of US Bancorp. MUFG will end with a 2.9% stake in US Bancorp.
US Bancorp obtains $ 58 billion in loans and $ 90 billion in deposits, based on MUFG Union Bank’s balance sheet as of June 30.