Super Micro Computer (SMCI) experienced significant volatility following the announcement of a $1.5 billion private offering of convertible senior notes due in 2029. The company's stock was down 43% in pre-market trading potentially due to the dilutive effect of the offering but later managed to recover, indicating a roller coaster day for the stock. The conversion price was set at $1341 per share. Despite the initial drop, including a 15% drop after the announcement, SMCI's stock managed to climb back up, underscoring the unpredictable nature of its trading pattern amidst the news. The offering marks the market's first issuance of a zero-coupon convertible bond since 2022, featuring a zero-percent interest rate and a 37.5% conversion premium.
$SMCI In the marketβs first issuance of a zero-coupon convertible bond since 2022, the company priced $1.5 billion of convertible bonds due in 2029. The securities have a zero-percent interest rate and a conversion premium of 37.5%. https://t.co/Jxq2cVA3Fb https://t.co/A5BLxYpx30
$SMCI $1341 per share on convertible notes π https://t.co/ACyxrQCG16 https://t.co/DC8n257lY5
FinX in a nutshell Everyone: Don't short $SMCI you can get destroyed. $SMCI: -20% in a day Everyone: My largest trade was shorting $SMCI
Ken Griffin to $SMCI option buyers. https://t.co/ZHjNUkHdt7
$SMCI is the Russell 2000 $iwm See my story from yesterday.... https://t.co/fN1ahkCsBr
$smci drops 15% the day after my farmer cousin buys. https://t.co/jZdRf4j6lp
$smci big roller coaster today, now up
Supermicro Announces Pricing of Private Offering of $1.5 Billion of Convertible Senior Notes Due 2029. $SMCI $1341 conversion price We are heading higher..
$SMCI set for pullback because too many people bought calls with high OTM strikes that are likely going to expire worthless today
Super Micro Computer $SMCI down 43 in the pre potentially dilutive $1.5B notes offering https://t.co/0Lre63Zhhv https://t.co/18bLrHQVK6