Midway raises $72 million

Last week, Midway Games said it would offer institutional investors $75 million of Convertible Senior Notes due in 2026. The offering is over now, and Midway has announced that the company has raised $72.3 million. The offer of convertible bonds is one way publicly traded companies raise capital (the move gives investors a return on their money and the option to swap the bonds for stock if the share price goes higher). While no other game publisher regularly issues such investment instruments, given that Midway's stock is so thinly traded, bonds were a quicker way to acquire working capital. Midway says that the funds raised will go toward "general corporate purposes, including working capital and capital expenditures" and that the company may use a portion of the net proceeds to "fund possible future acquisitions of, or strategic alliances with, development companies or other companies involved in the development or production of video games."