What happened Shares of Infinera Corp. (NASDAQ: INFN) were down on Wednesday after the networking hardware and software provider announced plans to sell $200 million of convertible senior notes. The stock was down 14.5% at 11:30 a.m. EST. So what Infinera plans to offer $200 million of convertible senior notes due 2027 in a private placement. The initial purchaser will also be granted a 13-day option to buy up to $30 million worth of additional notes. Image source: Getty Images. Infinera plans to use the proceeds from the offering for general corporate purposes. This includes working capital to fund growth and new strategic projects. Now what This move comes a little more than a week after Infinera reported its fourth-quarter results. The company beat analyst expectations across the board, with revenue growing by 15% year over year and a return to profitability on an adjusted operating basis. The company is nowhere close to profitable under generally accepted accounting principles (GAAP). At the end of 2019, Infinera had $109 million of unrestricted cash and total debt of $355 million. Cash flow from operations was negative throughout 2019, leading to a shrinking cash balance and a growing debt load. The offering will give the company more resources to pursue growth, but investors don't seem thrilled by the additional debt. 10 stocks we like better than InfineraWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Infinera wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Timothy Green has no position in any of the stocks mentioned. The Motley Fool recommends Infinera. The Motley Fool has a disclosure policy.Source