LCI Industries slides after unveiling $400 mln convertible debt deal

Shares of LCI Industries LCII.N down 4.2% at $92.01 on Tues as auto components supplier looks to raise capital

LCII falls as much as 5.3% to $91, lowest since Dec 2022

Indiana-based co offering privately $400 mln convertible bonds (CBs) due 2030

It plans to use portion of net proceeds to pay for capped calls, remainder to repurchase portion of its outstanding 1.125% CBs due 2026 and up to $50 mln of its common stock

Co also launched proposed $400 mln 7-yr term loan refinancing

With ~25.5 mln shares outstanding, co has current market cap of ~$2.3 bln

Including move on the session, stock down ~11% YTD and off ~20% over the past 12 months

Avg rating among 10 analysts on stock is "hold"; median PT of $115 implies 25% upside to current levels - LSEG