Akamai Tech slips on planned $1.35 bln convertible debt deal

Shares of Akamai Technologies AKAM.O down 2.8% at $76.75 in extended trading as cloud co looks to raise capital to refinance debt

Cambridge, Massachusetts Akamai offering privately $1.35 bln convertible bonds (CBs) due 2033

Co plans to use net proceeds to repay approx $250 in borrowings under 5-yr revolver and repay portion of its $1.15 bln outstanding 0.375% CBs due 2027

It also plans to use about $275 mln to repurchase shares from purchasers of the new CBs and pay for capped calls, derivative transactions used to offset share dilution

Co has ~$11.5 bln market cap, according to LSEG data

AKAM shares on Tues finished up 15 cents at $78.94. YTD, stock down 17.5%

Of 24 analysts covering AKAM, recommendation breakdown is 13 "strong buy" or "buy", 10 "hold" and 1 "sell" - LSEG

Median PT of $100 down from $105 a month ago and from $115 on Feb 13