Red Hat reported last week that it proposes to sell $700 million in bonds due to mature in 2019, with initial purchasers being given the option to buy an additional $105 million of the company’s bond offerings within 30 days.
The company, which has its research headquarters on Littleton Road, intends to use $400 million to repurchase its own stock as well as provide working capital for general purposes as well as possible acquisitions and strategic transactions.
Red Hat has spent $80 million buying back its own stock from investors over the last two fiscal quarters and had no debt along with $1.32 billion in cash and investments at the end of August.
At the time of the announcement, shares of Red Hat’s stock (RHT) began to rise from $56.15 to a peak of $58.14 on Oct. 3 before falling again this week.
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