Formula One tracking stock FWONK.O, tied to Liberty Media, was down 0.2% to $102.68 on Monday after the planned capital raise was announced.
Liberty Media said early Monday it is offering privately $600 million of convertible bonds due 2032.
At the company’s election, the bonds will be convertible into cash, Series C stock (FWONK) or a combination; there are about 224.3 million Series C shares outstanding.
Liberty Media expects to use net proceeds to enter capped call transactions related to its 2.25% convertible bonds due 2027 and for working capital and general purposes, including repayment of the 2027 bonds.
Recent results and analyst sentiment
On Thursday, Formula One reported a 38% year-over-year decrease in revenue to $764 million in the second quarter due to four fewer races; Liberty Media’s overall second-quarter revenue of $934 million slightly missed analysts’ estimate of about $941 million, according to LSEG data.
FWONK stock is up 4% year to date.
11 of 13 analysts rate the stock and rate it ; the median price target is .
