06:19 AM EST, 03/06/2024 (MT Newswires) -- (Updates with the stock move in the headline and first paragraph.)

Xerox (XRX) shares sank more than 10% in premarket activity on Wednesday after the company said it plans to offer $300 million worth of convertible senior notes in a private placement to qualified institutional buyers.

The company said late Tuesday it also intends to grant initial buyers a 13-day option to purchase up to an additional $45 million worth of notes.

It plans to use the net proceeds to fund the cost of capped call transactions and to pay related fees and expenses.

Additionally, Xerox said it increased the maximum tender cap for its 5.000% senior notes due 2025 to $362 million from $94 million.

Price: 16.82, Change: -1.97, Percent Change: -10.48