NEW YORK ( TheStreet) -- Priceline.com (PCLN) shares rose 0.98% to $800 after the company announced it would be selling $1 billion worth of convertible notes, and subsequently using some of that money to add an additional $1 billion to its buyback program.
The Norwalk, Conn.-based Priceline will sell convertible Senior Notes due 2020 through a private offering. The interest rate, conversion rate and other terms have not been set yet.
In conjunction with the debt offering, the company's board of directors authorized an additional $1 billion for a share repurchase program. "Priceline.com plans to use the net proceeds from the offering of the notes to repurchase up to $450 million of its outstanding common stock in privately negotiated, off-market transactions, which may be effected through the initial purchaser of the notes or its affiliates, concurrently with the consummation of the offering," the company said in the filing. The remaining funds would be used to buy back stock in the open market, with any leftover money used for general corporate purposes.
Priceline recently reported first-quarter earnings that beat expectations. The Norwalk, Conn.-based Priceline posted earnings of $5.76 per share on $1.3 billion in revenue in its first quarter. Analysts polled by Thomson Reuters were looking for $5.27 per share on $1.275 billion in revenue.Shares of Priceline closed the Wednesday trading session lower, amid a sharply lower close in equities. Shares closed at $792.27, a loss of 1.5%. -- Written by Chris Ciaccia in New York >Contact by Email. Follow @Chris_Ciaccia
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV