Adtran falls after boosted $175 mln convertible bonds sale

Shares of networking and communications provider Adtran Holdings ADTN.O down 1.9% at $8.69 early Weds after above-target capital raise

Huntsville, Alabama-based firm early Weds announced pricing $175 mln 3.75% 5-yr convertible bonds offering

Initial conversion price of $11.52 is 30% above stock's last close of $8.86

ADTN shares on Tues tumbled 15.1% on heavy volume after co late Mon announced $150 mln deal

Co intends to use net offering proceeds to repay about $152.8 mln of outstanding borrowings under Wells Fargo credit agreement dated July 18, 2022

It also plans to use about $15.3 mln to pay cost of capped calls transactions; the initial cap price set at $15.51, 75% above stock's last sale

Including move on Weds, shares up ~4% YTD vs Nasdaq's .IXIC ~15% advance

Half of the 8 analysts covering ADTN rate the stock "buy", the other half rate "hold" and median PT is $12, per LSEG