Buy It or Sell It? Wisdom Tree Investments Inc (NASDAQ:WETF)

Wisdom Tree Investments Inc (NASDAQ:WETF) is trading slightly lower in the pre-market session, cooling off a bit after a 37% surge in the 6-month.

Major Trigger:

WisdomTree Announces Pricing of Offering of $150.0 Million of Convertible Senior Notes

Key Highlights:

  • announced the pricing of its offering of $150.0 million aggregate principal amount of its convertible senior notes due 2026 (the “notes”) in a private offering (the “offering”) to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”).
  •  WisdomTree also granted the initial purchaser of the notes an option to purchase, for settlement during a period of 13 days from, and including, the date the notes are first issued, up to an additional $22.5 million aggregate principal amount of the notes.
  • The sale of the notes to the initial purchaser is expected to settle on June 14, 2021, subject to customary closing conditions, and is expected to result in approximately $145.7 million (or approximately $167.6 million if the initial purchaser exercises its option to purchase additional notes in full) in net proceeds to WisdomTree after deducting the initial purchaser’s discount and estimated offering expenses payable by WisdomTree.
  • WisdomTree intends to use approximately $30.8 million of the net proceeds from the offering to repurchase shares of its common stock from certain purchasers of the notes in privately negotiated transactions effected through the initial purchaser, as its agent, concurrently with the settlement of the offering.

Market Reaction

As of 8:42, WETF is trading at $6.88, down 0.45%. So far more than 350 shares have exchanged hands.

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