OAKLAND, CA (Hypebot) – In the last few weeks, Pandora purchased indie ticketing firm Ticketfly for $450 million and then $75 million for the assets of bankrupt music streamer Rdio. Along the way, they announced to take an expanded offering international. But to execute, Pandora needs a big pile of cash – and it apparently needs it quickly.
Pandora has announced its intention to offer $300 million in convertible senior notes due in 2020 in a private placement to institutional buyers. Morgan Stanley is thje the initial purchaser with a 30-day option to purchase up to $45 million more and will act as the sole bookrunner for the offering.
The notes will be unsecured, senior obligations of Pandora and will be convertible into cash or common stock. The interest rate, conversion rate and other terms of the notes are to be determined upon pricing of the offering.
Wall Street did not react well. In stead of expressing confidence that Pandora would soon have $300 more in its war chest, investors sent the stock downward as much as 7% by the first our of trading on Thursday morning.