Formula One Group Adds 3% After Announcing Private Placement Of Sr. Notes

Shares of Formula One Group (FWONK) are up more than 3% Wednesday morning at $68.42.

Liberty Media Corporation, the parent company of Formula One, today said it will privately place upsized $425 million of 2.25% convertible senior notes due 2027.

The Notes on offer at present, will have an initial conversion rate of 11.6198 shares of FWONK per $1,000 principal amount of Notes, about $86.06 per share, a premium of nearly 30% to the closing price of $66.20 per share as on August 9.

Liberty intends to use the proceeds of the offering to buy back approximately $209 million of its existing 1% cash convertible notes due 2023.

FWONK has traded in the range of $47.07 – $71.17 in the last 1 year.

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