Monster Beverage's stock up 1.4% after company announces Dutch auction tender offer for up to $3 billion of its own stock

Monster Beverage Corp.'s stock (MNST) rose 1.4% early Wednesday, after the energy drink company said it has commenced a modified Dutch auction tender offer for up to $3.0 billion of its outstanding stock. The company said it would pay cash at a price of no less than $53 and no more than $60 for the shares. The tender will expire at 11:59 p.m. Eastern time on June 5. The tender will be funded using $2.0 billion of cash on hand, $750 million in borrowings under a new term loan and $250 million in borrowing under a new revolving credit facility. The tender offer is being made outside of the company's stock buyback programs. Evercore Group LLC and J.P. Morgan Securities are dealer managers for the tender. Monster, a longtime stock market darling, has come under pressure of late as more competition enters the energy drink space. The stock is down 5% in the year to date, while the S&P 500 has gained 8.8%.

-Ciara Linnane

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05-08-24 0812ET

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