Pandora Drops on Secondary Offering

NEW YORK ( TheStreet) -- Pandora Media ( P) shares dropped 3.9% to $23.06 after the music-streaming company filed a secondary share offering.

In the proposed filing, Oakland-based Pandora said it will sell 10 million additional shares, and another 4 million shares from current stockholders.

To appease the bankers on the deal, Pandora said in a filing that it "intends to grant the underwriters a 30-day option to purchase up to an additional 2,100,000 shares to cover over-allotments, if any."

Pandora said it expects to use the proceeds "for general corporate purposes, including working capital and capital expenditures." Also included in the offering, Pandora said it may use the proceeds for acquisitions.

The lead bookrunners on the offering will be J.P. Morgan and Morgan Stanley. Wells Fargo Securities, BofA Merrill Lynch, BMO Capital Markets, Canaccord Genuity, Needham & Company, Pacific Crest Securities, Piper Jaffray and William Blair are acting as co-managers.

-- Written by Chris Ciaccia in New York

>Contact by Email.

If you liked this article you might like

Wendy's, Roku, GM, AT&T and 3M - 5 Things You Must Know

Wendy's, Roku, GM, AT&T and 3M - 5 Things You Must Know

Internet Stocks' Momentum Won't Stop Anytime Soon: Goldman Sachs

Internet Stocks' Momentum Won't Stop Anytime Soon: Goldman Sachs

A Fujifilm Deal Could Derail Carl Icahn's Xerox Overhaul Effort

A Fujifilm Deal Could Derail Carl Icahn's Xerox Overhaul Effort

Spotify Business Model Spells Challenges for IPO and M&A

Spotify Business Model Spells Challenges for IPO and M&A

FCC's Dismantling of Net Neutrality Could Spur New Wave of Telco M&A

FCC's Dismantling of Net Neutrality Could Spur New Wave of Telco M&A