WWE to exchange 6.9 million shares and $3.9 million in cash for convertible debt due 2023

World Wrestling Entertainment Inc.
WWE,
+0.44%
announced Monday agreements with certain investors to exchange 6.9 million newly issued shares of common stock and $3.9 million in cash for $171.0 million principal amount of 3.375% convertible debt due this year. The media and entertainment company’s stock was still untraded in the premarket. Based on Friday’s closing price of $105.17, the share issuance would be valued at $725.7 million, or 9.3% of the WWE’s market capitalization of $7.83 billion. After the exchanges of shares and cash close, which is expected to occur on or about May 18, a total of $42.7 million principal of the convertible debt due 2023 will remain outstanding. WWE’s stock has run up 53.5% year to date, while the S&P 500
SPX,
-0.16%
has gained 7.4%.