Akamai Tech ticks up after $1.5 bln convertible bond offering

Shares of Akamai Technologies AKAM.O up 0.2% at $77.70 premarket after cybersecurity and cloud firm secures more capital than planned to refinance debt

Cambridge, Massachusetts Akamai late Weds announced pricing private offering of $1.5 bln 0.25% convertible bonds (CBs) due 2033

Initial conversion price of $93.01 represents 20% premium to stock's last close

AKAM shares on Weds slipped 1.8% after co late Tues launched $1.35 bln offering to repay approx $250 in borrowings under 5-yr revolver and partially repay its $1.15 bln outstanding 0.375% CBs due 2027

Co plans to use ~239.1 mln of net proceeds to pay for capped calls, and about $300 mln to repurchase shares from purchasers of the new CBs

Through Weds close, AKAM shares down ~19% YTD vs Nasdaq's .IXIC 0.8% decline

Of 22 analysts covering AKAM, recommendation breakdown is 12 "strong buy" or "buy", 9 "hold" and 1 "sell" and median PT is $100, latest LSEG data shows