Investing.com -- Shares of Redcare, the online pharmacy, fell 14% after the company announced plans to issue new convertible bonds and buy back old securities.
The move, which was revealed after the close of trading in Sevenum, the Netherlands on Tuesday, has not been well received by the stock market.
Redcare intends to sell new bonds worth 300 million euros with a 7-year term, carrying a coupon interest rate between 1.75% and 2.25%. The conversion premium is expected to range from 40 to 45%. The results of the allocation are anticipated to be disclosed on the same day.
Concurrently, the company plans to repurchase outstanding convertible bonds valued at 225 million euros, due in 2028 with a 0% coupon. The proceeds from the new bond issue are earmarked for this repurchase and for general corporate purposes.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.