NEW YORK (TheStreet) -- Shares of WebMD Health (WBMD) are falling by 5.7% to $63.17 in early afternoon trading on Thursday, as the company announced plans to offer $300 million of convertible debt in a private offering.
"WebMD also expects to grant the initial purchaser in the proposed offering an option to purchase up to an additional $60 million aggregate principal amount of notes," the company said in a statement.
The company said it intends to use the net proceeds from the sale of the notes for general corporate purposes, such as acquisitions, repurchases of WebMD common stock, repurchases of outstanding convertible notes and for working capital.
The initial conversion price represents a premium of about 30% over the closing price of WebMd stock on May 25.
The New York-based company is a provider of health information services.
About 2.52 million of the company's shares were traded so far today vs. its average 30-day volume of 671,306 shares per day.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B+ on the stock.
The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, expanding profit margins and good cash flow from operations.
The team believes its strengths outweigh the fact that the company has had generally high debt management risk by most measures that were evaluated.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: WBMD