08:27 AM EDT, 07/10/2024 (MT Newswires) -- Ziff Davis ( ZD ) said Wednesday it has entered into agreements with certain holders to exchange about $401 million of its 1.75% convertible senior notes due 2026.

The company said that under these agreements, Ziff Davis ( ZD ) will exchange the notes for around $263 million in new 3.625% convertible senior notes due 2028 and about $135 million in cash.

After the exchange, expected to close by July 16, about $149 million of the existing notes will remain, and the new notes will total around $263 million, Ziff Davis ( ZD ) said.

The new notes will not generate any cash proceeds for the company and will bear interest at 3.625% per year, maturing on March 1, 2028, the company said. They can be converted into company stock under certain conditions, Ziff Davis ( ZD ) added.

Shares of the company were down 1.8% in recent Wednesday premarket activity.

Price: 50.94, Change: -0.92, Percent Change: -1.77