Ann: Xero prices zero coupon US$700m convertible notes, page-8

Very common to see share price drop when a Capital Raise or C-Notes are issued, despite it being a smart decision for the company. I can understand the negative connotation where companies have to raise debt to bail themselves out of a situation but this does not seem to be case. Of course people see the price drop a bit and panic without understanding the announcement properly, causing a snowball effect. Unless I’ve missed something, I’d expect the market to settle down and the share price to slowly recover back to where it was.