Broadcom Inc. (Nasdaq: AVGO) shares are trading lower following news of a $3 billion series A mandatory convertible preferred stock offering.
The company announced it has upsized and priced a public offering of 3,250,000 shares of 8% series A mandatory convertible preferred stock at a price to the public of $1,000 per share.
The offering has been upsized from the previously announced $3 billion. Broadcom says the offering is scheduled to be completed on Sept. 30 and the net proceeds will be approximately $3.2 billion.
Bank of America Merrill Lynch, Citigroup, JPMorgan and Morgan Stanley are acting as representatives of the underwriters and joint-book running managers for the offering.
Broadcom shares were trading down 4% at $271 in Wednesday’s pre-market session. The stock has a 52-week high of $323.20 and a 52-week low of $208.23.
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