Shares of Zynga Inc.
fell 2.1% in premarket trading Monday, after the mobile games maker announced plans to sell $750 million in convertible debt. The senior notes due 2026 will be convertible into shares of common stock, cash or a combination of both, at the company’s choice. The interest rate and conversion rate and other terms of the debt will be determined later. Zynga plans to use the proceeds from the offering to pay the cost of capped call transactions with respect to the notes and for working capital and other general corporate purposes. The stock has rallied 42.0% year to date while the S&P 500
has advanced 13.4%.