Shares of AMC Networks (NASDAQ:AMCX) (AMXC) are down more than 7% premarket Monday after the company announced it intends to offer $125 million aggregate principal amount of convertible senior notes due 2029 in a private offering.
At the time of writing, AMC Networks is trading at $14.51, at its lowest level since May 15.
AMC said it expects to grant the initial purchasers an option to purchase up to an additional $18.75 million aggregate principal amount of the notes.
The company anticipates using the net proceeds from the offering for general corporate purposes, which may include the repayment of debt.
In May, Morgan Stanley (NYSE:MS) analysts said they remain Underweight on Paramount Global (NASDAQ:PARA) and AMC Networks, expressing concerns over the pressures on traditional media.
The firm stated: "Linear network revenue trends remain negative, sports rights are leaking out of the bundle to streamers, and pricing power with MPVDs is eroding."