WisdomTree dips after $475 mln convertible bond sale for acquisition

Shares of asset manager WisdomTree WT.N down 2% on light premarket volume at $12.95 after acquisition-related capital raise

New York-based WT announces pricing private offering of $415 mln 4.625% convertible bonds (CBs) due 2030, and full exercise of $60 mln over-allotment option

Base offering size boosted from $400 mln and initial conversion price set at approx $19.15, 45% above stock's last close

It intends to use $275 mln of net offering proceeds to pay for previously announced acquisition of Ceres Partners, a farmland investment specialist

Co also plans to use $37 mln to repurchase about 93% of its outstanding 5.75% CBs due 2028, and $90 mln to buy back 6.8 mln of its shares in relation to the offering

If the acquisition is not completed, co says will use net proceeds for general purposes, including repayment of debt and other outstanding CBs

WT shares rose for sixth straight session on Mon ending up 1.1% at $13.12, giving co $1.9 bln market cap

Through Mon, shares up 26% YTD

Of 7 analysts covering WT, 4 rate "strong buy" or "buy", 3 rate "hold" and median PT is $15, LSEG data reflects