Trip.com Group Limited ( TCOM ) shares are trading lower after the company announced a proposed offering of $1.3 billion of convertible senior notes.

The convertible senior notes will mature on June 15, 2029, unless repurchased, redeemed, or converted per their terms before such date. 

The holders of the note have the right to demand that the company buy back all or a portion of their notes for cash on June 15, 2027, or upon the occurrence of certain fundamental changes.

The company intends to use the net proceeds from the Notes offering to repay existing financial debt, expand its overseas operations, and meet working capital requirements.

Simultaneously with the pricing of the Notes Offering, the company plans to repurchase a number of its ADSs for up to $400 million, which will be carried out under its existing share repurchase plans through off-market privately negotiated transactions.

The company anticipates that the purchase price for the concurrent repurchase will be the last reported sale price per ADS on the NASDAQ as of June 4, 2024.

Investors can gain exposure to the stock via Tidal Trust II CoreValues Alpha Greater China Growth ETF and Invesco Golden Dragon China ETF ( PGJ ) .

Also Read: These Analysts Raise Their Forecasts On Trip.com Group After Upbeat Results

Price Action: TCOM shares are down 3.85% at $49.75 premarket the last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image: Unsplash/ Charlotte Noelle