Yahoo completes $1.25 bn offering of convertible notes

Yahoo has said that it has completed its previously announced offering of 1.25 billion dollars in convertible senior notes due in 2018.

The Silicon Valley Internet giant said it would use the net proceeds for a number of corporate purposes, including acquisitions, and other strategic transactions, additional repurchases of common stock and working capital, the Wall Street Journal reports.

The offering was upsized from the previously announced 1.0 billion dollars aggregate principal amount of notes, the report added.

For the initial purchasers, Yahoo has granted the right to purchase up to an additional 187.5 million dollars aggregate principal amount of notes, which will exercisable within a 30-day period.

According to the report, the convertible notes will be offered and sold by the initial purchasers only to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933.

The company said that the notes will be convertible into cash, shares of Yahoo's common stock or a combination of cash and shares of common stock, at Yahoo's election.