Super Micro rises after $2 bln convertible bond sale

Shares of AI server maker Super Micro Computer SMCI.O up 2.8% to $42.04 premarket after it clinches capital raise

San Jose, California-based firm early Tues announced pricing offering of $2 bln 0% 5-yr convertible bonds (CBs)

Initial conversion price set at $55.20, 35% above stock's last close

SMCI shares on Mon dropped 9.8% to $40.89 after co launched the offering

Co said intends to use net offering proceeds for general purposes, including to fund working capital for growth and business expansion

It also expects to use $158.4 mln of net proceeds to fund capped calls, derivative transactions employed to mitigate shareholder dilution, and $200 mln to repurchase its shares from the CB buyers

SMCI, which makes high-performance servers featuring chips from AI-darling Nvidia NVDA.O, among other chipmakers, has $24.4 bln market cap

Through Mon, shares up 34% YTD

Avg rating among 18 analysts covering SMCI is "hold" and median PT is $37.97, current LSEG data reflects