Shares drop 9% as company raises 494.5 million euros

  • Ubisoft shares tumble 9% after bond placement
  • Bonds raised 494.5 million euros
  • Bonds have a 2.875% coupon and 47.5% conversion premium
  • Ubisoft plans to use funds to refinance debt and repurchase shares

Shares of Ubisoft Entertainment slumped after the company placed bonds convertible or exchangeable into shares. The bonds raised 494.5 million euros and have a 2.875% coupon and a 47.5% conversion premium. Ubisoft plans to use the funds to bolster its financial flexibility, refinance existing debt, and repurchase shares.

Public Companies: Ubisoft Entertainment (UBI)
Private Companies:
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Factuality Level: 8
Justification: The article provides factual information about Ubisoft’s decision to issue convertible bonds and its impact on the company’s shares. It includes quotes from analysts and provides details about the maturity date, coupon, and conversion premium of the bonds. The article does not contain any irrelevant or misleading information, sensationalism, redundancy, or opinion masquerading as fact. It also does not include any bias or personal perspective presented as universally accepted truth. However, the article could have provided more context about Ubisoft’s financial situation and the reasons behind its decision to issue bonds.

Noise Level: 6
Justification: The article provides relevant information about Ubisoft’s decision to issue convertible bonds and its impact on the company’s shares. It includes details about the amount raised, maturity date, coupon, and conversion premium of the bonds. The article also mentions analysts’ opinions on the move and Ubisoft’s plan to use the funds for share repurchases. However, it lacks in-depth analysis of the long-term trends or antifragility of Ubisoft’s financial position, and it does not provide actionable insights or solutions for readers.

Financial Relevance: Yes
Financial Markets Impacted: Shares of Ubisoft Entertainment

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the financial impact of Ubisoft Entertainment’s decision to place convertible bonds to bolster its financial flexibility, refinance debt, and fund share repurchases. There is no mention of an extreme event or its impact.

Reported publicly: www.marketwatch.com