Dave & Buster’s news: The PLAY share plunges 15% on the offer for private shares

<p>Dave & Busters (NASDAQ: PLAY) is in the news Monday after announcing a private equity offering that has PLAY shares taking a dive.

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The private equity offering has Dave & Buster’s attempt to raise money by selling shares in its stock to Jefferies LLC. This means that it agrees to sell a total of $ 100 million in PLAY shares to the investor.

The agreement between Dave & Buster and Jefferies LLC also includes an option that allows the investor to purchase additional shares. The total value of additional shares that can be purchased is $ 15 million. This option is available for 30 days.

A Dave & Buster press release reveals that Jefferies LLC plans to resell the shares in PLAY shares that they buy. It will sell these shares at variable prices.

Dave & Busters mentions that they already have plans for financing that they receive through this private equity offer. The company says that most will use the cash to strengthen their balance sheet.

Dave & Busters states that the main goal of this is to better help it cope with the new coronavirus. This means that it can use the money to run its public business or to repay its debts. This makes sense because many companies are struggling with lower business because the coronavirus pandemic is wreaking havoc on the economy.

The PLAY share decreased by 14.9% as of Monday afternoon and decreased by 67.2% since the turn of the year.

At the time of writing, William White had no position in any of the above securities.

Article printed from InvestorPlace Media, https://investorplace.com/2020/05/dave-busters-news-hammers-play-stock/.

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