Enovix Corporation ( ENVX ) shares are trading lower Thursday after the company announced a $300 million convertible notes offering.

What To Know:Enovix ( ENVX ) priced $300 million aggregate principal amount of 4.75% convertible senior notes due 2030 in a private placement to qualified institutional buyers. The company also granted purchasers an option to buy up to an additional $60 million of notes. The offering is expected to close on Sept. 15, subject to customary conditions.

Enovix ( ENVX ) estimates net proceeds of about $290.4 million, or $348.6 million if the option is exercised in full. The company expects to use about $37.7 million of the proceeds to fund capped call transactions designed to offset potential dilution from the conversion of the notes. The remaining proceeds are earmarked for general corporate purposes, which may include acquisitions.

The notes will initially be convertible into cash, shares of Enovix ( ENVX ) common stock or a combination of both at Enovix's ( ENVX ) election, at an initial conversion price of about $11.21 per share. This represents a premium of roughly 22.5% to the last reported sale price of Enovix ( ENVX ) stock on Sept. 10.

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ENVX Price Action: At the time of publication, Enovix ( ENVX ) shares are trading 12.75% lower at $7.98, according to data from Benzinga Pro.

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