SolarEdge Technologies Inc ( SEDG ) shares are trading lower Tuesday after the company announced a private offering of $300 million convertible senior notes due 2029.

What Happened: After the market close on Monday, SolarEdge ( SEDG ) said it intends to offer $300 million aggregate principal amount of Convertible Senior Notes due 2029 in a private offering to people reasonably believed to be qualified institutional buyers.

The initial purchasers are expected to be granted a 13-day option to purchase up to an additional $45 million aggregate principal amount of the notes on the same terms and conditions.

The final terms of the Notes, including the initial conversion price, interest rate and certain other terms, will be determined at the time of pricing of the offering.

In connection with the pricing of the notes, SolarEdge ( SEDG ) expects to enter into capped call transactions with one or more of the initial purchasers. SolarEdge ( SEDG ) noted that it intends to use net proceeds from the offering to pay the cost of its capped call transactions.

See Also: Pool Lowers FY24 EPS Forecast, Joins SolarEdge Technologies, Spirit AeroSystems And Other Big Stocks Moving Lower In Tuesday’s Pre-Market Session

How To Buy SEDG Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in SolarEdge Technologies' ( SEDG ) case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

SEDG Price Action: SolarEdge ( SEDG ) shares were down 17.3% at $27.50 at the time of publication, according to Benzinga Pro.