What happened Shares of Fastly (NYSE: FSLY) dipped as much as 5% today after the company announced a convertible note offering. Fastly is looking to raise an additional $750 million in fresh capital. So what The edge cloud technology company, which offers content delivery network (CDN) services, said it has proposed a private placement of $750 million worth of convertible notes that will be due in 2026. The deal is being offered to qualified institutional investors, which will have an option to purchase an additional $112.5 million in notes from Fastly. Image source: Getty Images. The news comes as tech stocks are pulling back after a strong rally yesterday. Additionally, institutional investors that buy convertible notes are typically hedge funds that implement convertible arbitrage strategies, which entail buying the convertible bonds while simultaneously shorting the underlying stock to mitigate directional risk. That tends to create some near-term selling pressure as the investors establish their positions. Now what The deal has not yet priced, so key terms such as the interest rate, initial conversion rate, and conversion price have not been finalized. Pricing typically occurs in the evening after the private placement is announced. Fastly says it intends to use the net proceeds from the deal for working capital and other general corporate purposes. Fastly finished the fourth quarter with $216 million in cash on the balance sheet. "As we continue to see strong growth and increased demand for our edge Quad platform, we aim to capitalize on this opportunity and continue investing in initiatives to drive revenue growth, network utilization, and scale," CFO Adriel Lares commented on the earnings call last month. 10 stocks we like better than FastlyWhen 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 Fastly 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 February 24, 2021 Evan Niu, CFA has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Fastly. The Motley Fool has a disclosure policy.Source