Zscaler Inc (NASDAQ:ZS) shares are falling Monday after the company announced a proposed offering of convertible senior notes.
What Happened: Cybersecurity firm Zscaler said it intends to offer $1.5 billion of convertible senior notes due 2028 in a private offering to institutional investors. The company also expects to grant the initial purchasers a 13-day window to purchase up to an additional $225 million of the notes.
Zscaler expects to use some of the proceeds to pay the cost of capped call transactions in connection with the notes. The remainder will be used for general corporate purposes, which may include working capital, capital expenditures and potential acquisitions or strategy transactions.
Zscaler had approximately $3.01 billion in cash, cash equivalents and short-term investments as of April 30.
How To Buy ZS Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Zscaler's case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
ZS Price Action: Zscaler shares were down 2.02% at $308.96 at the time of publication Monday, according to Benzinga Pro.
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