Yahoo selling $1 billion in senior notes, adds $5 billion to stock buyback program

SUNNYVALE, Calif. – Yahoo Inc. says it plans to sell $1 billion in convertible senior notes in a private placement and will use the money to buy back shares and for other purposes.

The Sunnyvale, Calif., company said Tuesday that it added $5 billion to its stock buyback program. Yahoo had spent $3.1 billion buying back 123 million shares in the first nine months of this year.

Companies sell stock in an effort to boost the value of their remaining shares.

The notes mature in 2018 and are convertible into cash, shares of Yahoo’s common stock or a combination of both.

Shares are up 1.5 per cent to $35.16 in after-hours trading.