Rubrik edges up after $1 bln convertible debt sale

Shares of cybersecurity firm Rubrik RBRK.N, backed by Microsoft MSFT.O, up 0.1% premarket to $87.65 after capital raise

Palo Alto, California-based Rubrik early Weds announced pricing offering of $1 bln 0% 5-yr convertible bonds

Initial conversion price of $124.76 is 42.5% above stock's last close

RBRK shares on Tues closed down 6% at $87.55 after co announced $1 bln offering to fully repay ~$328 mln of outstanding loans under its credit agreement, and for potential acquisitions or strategic investments, among other purposes

Co expects to use $77 mln of proceeds to pay for capped calls to offset dilution; cap price is initially at $175.10, which represents 100% premium to last sale

Through Tues, stock up 34% YTD

Of 21 analysts covering RBRK, recommendation breakdown is 18 "strong buy" or "buy" and 3 "hold" ratings; median PT of $110 up from $80 a month ago - LSEG latest data

Co IPOd in Apr 2024 at $32