Oil refiner Delek US slides after unveiling $400 million convertible bond offering
DK•Delek US shares fell 8.3% before the bell after the company announced a private offering of $400 million in convertible bonds due Nov. 1, 2031.
1. Bond offering details
Delek US said it intends to use the proceeds for general corporate purposes, including partial repayment of a term loan. It also plans to use some proceeds to fund capped calls, derivative transactions intended to offset potential dilution.
2. Recent share performance
The stock had fallen for four consecutive sessions after surging about 144% year to date through Wednesday. It reached a record intraday high of $82.27 on Friday.
