Vantage Drilling Company's (NYSE:VTG) small cap stock fell on Tuesday after the company released more information on an underwriting agreement in an offering of $50 million aggregate principal of its 7.875 percent senior convertible notes that are due in 2042.
According to RTTNews, the international offshore drilling contractor announced it had agreed to offer another $6.5 million aggregate principal amount of the notes to F3 Capital, an affiliate of the company, as long as they agree to deliver a similar portion of an existing promissory note. Proceeds from the sale are expected to fund new capital expenditures and other necessary items, as well as for all-around purposes.
The offering is expected to last until August 21.
News of the offering did not appear to sit well with investors, as the company's stock dropped 10 percent to $1.53 on Tuesday, August 14. This is compared with the firm's 52-week low of $1.01, and its 52-week high of $1.78. Shares opened the day at $1.58.