Cloudflare dips after $1.75 bln convertible debt offering
Shares of software firm Cloudflare NET.N down 1.7% premarket to $167.92 after it raises capital
San Francisco-based co early Fri announces pricing $1.75 bln 0% 5-yr convertible notes offering
Initial conversion price of $247.67 is 45% above stock's last close. NET shares on Weds fell 5% to $170.81
Co, which offers services to improve website and application security and performance, says plans to use net offering proceeds for general purposes, including working capital, capex, debt repayment, potential acquisitions
Co also intends to use ~$248 mln of proceeds to pay for capped calls, derivative transactions to mitigate shareholder dilution
Cap price initially is $469.73, which represents 175% premium to last sale
Co has ~$59 bln market cap, per LSEG data
Through Thurs, stock up ~59% YTD
Of 35 analysts covering NET, 21 rate stock "strong buy" or "buy", 12 rate "hold" and 2 rate "sell" or "strong sell"; median PT is $151, according to latest LSEG data
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