Why Software Company Five9 Shares Are Sliding Premarket Today

Benzinga ·  Feb 27 07:58

Five9, Inc. (NASDAQ:FIVN) shares are trading lower Tuesday morning. Yesterday, the company announced a proposed $600 million convertible notes offering.

The aggregate principal amount of convertible senior notes is due 2029 in a private placement to qualified institutional buyers.

Five9 also expects to grant the initial purchasers of the notes a 13-day option to buy up to an additional $90 million principal amount. The interest for senior, unsecured obligations notes will be payable semi-annually in arrears.

Five9 anticipates using a portion of the net proceeds from the offering to pay the cost of the capped call transactions and to repurchase a portion of its outstanding 0.500% convertible senior notes due 2025.

The company plans to use the remainder of the net proceeds for working capital and other general corporate purposes.

Last week, the company reported fourth-quarter revenue of $239.1 million, beating the consensus of $238.00 million, and adjusted EPS of $0.61 exceeded the estimate of $0.49.

As of December 31, 2023, Five9 held cash and equivalents plus marketable investments of $730 million. The company expects FY24 revenue of $1.053 billion-$1.057 billion vs. $1.055 billion estimate.

Price Action: FIVN shares are down 5.35% at $59.99 premarket on the last check Tuesday.

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