Zscaler ticks down after $1.5 bln convertible debt sale

Shares of cloud security firm Zscaler ZS.O down 0.2% at $313.39 in thin premarket trading after clinching capital raise

San Jose, California-based ZS announced pricing $1.5 bln 0% 3-yr convertible bond offering

Initial conversion price set at $439.52, 40% above stock's last close

Co plans to use $171 mln of net proceeds to pay for capped calls, derivative transactions to mitigate potential dilution

Remainder for general purposes, including working capital, capex, potential acquisitions and strategic transactions

Through Mon close, ZS shares up 74% YTD for $49 bln market cap

On May 29, co raised its annual forecasts as businesses spend more on cybersecurity, and named Kevin Roberts as new CFO

Of 47 analysts covering ZS, recommendation breakdown is 34 "strong buy" or "buy" and 13 "hold" ratings, LSEG data reflects

Median PT of $320 up from $295 a month ago and from $240 on Mar 30