Why YY (YY) Is Falling In After-Hours Trading Monday

NEW YORK (TheStreet) -- YY (YY) was falling 2.2% to $79.68 in after-hours trading Tuesday after the company announced it a proposed offering of $400 million of convertible senior notes.

The convertible senior notes are due in 2019, and are subject to market conditions and other factors. Underwriters Citigroup (C), Deutsche Bank (DB), and Morgan Stanley (MS) all have a 30-day option to buy an additional $60 million.

Holders will have the right to require YY to buy back the note on April 1, 2017. The notes will mature on April 1, 2019.

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TheStreet Ratings team rates YY INC -ADR as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate YY INC -ADR (YY) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its notable return on equity, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good."

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