NEW YORK (TheStreet) -- Shares of TiVo (TIVO) were flat in morning trading Wednesday after the company announced the pricing of a private offering of $200 million of 2% convertible senior notes due 2021.
The offering contains a 30-day option for initial purchasers to buy up to an additional $30 million to cover any over-allotments. The company expects the offering to close on September 22.
The initial conversion price will be approximately $17.82 a share, which represents a conversion premium of approximately 30% to TiVo's closing price of $13.71 on Tuesday. The company will use most of the proceeds from the offering to fund share repurchases, which include approximately $42 million in concurrent share repurchases, and to offset most of the potential dilution of existing convertible debt.
These repurchases are separate from TiVo's previously announced $350 million share buyback program.
Separately, TheStreet Ratings team rates TIVO INC as a "buy" with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate TIVO INC (TIVO) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."