The Transurban Group (ASX: TCL) share price has been amongst the worst performers on the ASX 200 index on Thursday.
In morning trade the toll road giant's shares are down 3% to $14.82.
Why is the Transurban share price tumbling lower today?
The majority of today's decline can be attributed to the company's shares trading ex-dividend this morning for its partially franked 30 cents per share final distribution.
When a share trades ex-dividend it means they are trading without the rights to an upcoming dividend payment. And because buyers aren't entitled to the next dividend payment, the share price will usually drop in value by the amount of the expected dividend.
In addition to this, news of a private placement could also have put a spot of pressure on its shares today.
According to the release, Transurban has priced a €350 million private placement of senior secured 15-year notes under its Euro Medium Term Note Programme.
The release advises that pricing was completed on June 26 2019 and settlement is expected to occur on July 3 2019, subject to customary closing conditions.
The company intends to swap the proceeds from the notes into fixed rate Australian dollars, which will then be used for general corporate purposes and to fund its development pipeline.
The notes will rank equally with Transurban's existing senior secured debt and will mature in July 2034.
Transurban's chief financial officer, Adam Watson, said: "We are very pleased to be able to complete our inaugural Euro private placement on attractive terms. This placement further lengthens our average debt maturity, has enabled us to pro-actively manage our ongoing funding requirements and also provides access to a new long term debt investor base."
Transurban isn't the only share going ex-dividend today. Fellow dividend favourites BWP Trust (ASX: BWP) and Sydney Airport Holdings Pty Ltd (ASX: SYD) have also dropped lower after trading without the rights to their upcoming dividends.
