Shares of Openwave Systems (OPWV) were dropping in extra trading Tuesday after the company said it planned to offer $100 million of convertible subordinated notes due 2008.
The company said in a press release that the initial purchaser will have the option to buy up to an additional $15 million of the notes. Openwave expects to complete the offering this month.
In Instinet trading after the close, Openwave was falling 32 cents, or 6%, to $4.90.
Openwave plans to use the net proceeds from the offering primarily for additional working capital and other general corporate purposes, including potential acquisitions or strategic investments.
The company also expects to use part of the proceeds to buy U.S. government securities that will be pledged to secure the payment of the first six scheduled interest payments on the notes.
The notes will be convertible into Openwave's common stock.>To order reprints of this article, click here: Reprints
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