YHOO: Yahoo upsizes debt offering to $1.25B; notes won't provide interest

Yahoo upsizes debt offering to $1.25B; notes won't provide interest • 9:13 AM

• Yahoo (YHOO) has upsized its offering of convertible senior notes due Dec. 2018 to $1.25B from a prior $1B. The notes bear no interest, and have a conversion price of $53.43 (47% above Yahoo's current trading price). (PR)
• There's plenty of speculation Yahoo will use the proceeds from the offering, which coincides with a $5B buyback expansion, to acquire an Internet property or three. If Yahoo chooses to go after a hot startup rather than make smaller, talent/technology-focused deals (as it has frequently done in the Marissa Mayer era), it might need to get ready for some sticker shock.
• Yahoo had $1.83B in cash/equivalents and short-term investments at the end of Q3, and just $122M in debt. In addition, Yahoo stands to reap billions from selling part of its Alibaba stake following the Chinese e-commerce giant's much-anticipated IPO.

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