A new report by Imperial Capital focuses on FireEye Inc FEYE 0.33%‘s recent announcement of a $600 million convertible notes offering. Analysts mention the possibility that the funds could be used for an acquisition down the road. 

The Offering

The $600 million offering will be made up of $300 million in Series A convertible senior notes due in 2035 and $300 million in Series B convertible senior notes due that same year. The notes will be issued via private placement to qualified institutional buyers. The pricing and terms of the notes have yet to be determined.

FireEye will have the option of converting the notes into shares of common stock, cash or a combination of the two.

In addition, FireEye indicated that it intends to enter into a forward stock purchase transaction with one of the initial purchasers of the notes which would result in FireEye purchasing about $150 million of its own common stock with settlements in 2020 and 2022.

The Numbers

Analysts have crunched the numbers on the offering, and have determined that…

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