BWX Technologies dips after $1 bln convertible bonds sale unveil

Shares of nuclear components maker BWX Technologies BWXT.N down 0.9% at $198.64 early Weds as it looks to raise capital

Lynchburg, Virginia-based BWXT early Weds announces private offering of $1 bln 5-year convertible bonds

Co intends to use net proceeds to fully repay debt under credit facility, remainder for general corporate purposes

It also plans to use portion of proceeds to pay cost of entering into capped calls, derivative transactions employed to help offset potential dilution

Upon closing of the offering, BWXT expects to enter into a new five-year $1.25 bln senior secured revolving credit facility

Co has roughly $18.2 bln market cap

BWXT shares on Tues fell about 7% amid a broader Wall Street pullback after co reported Q3 rev up 29% y/y to $866.3 mln and adj EPS of $1.00, topping LSEG estimates of $790.9 mln/$0.86

Northland Capital Markets, which rates BWXT 'outperform', boosted its PT by $20 to $225

While co's preliminary 2026 outlook is positive overall, margins are implied lower due to government specialty materials contracts that contain customer-funded infrastructure buildout, Northland said

Despite the move on the session, BWXT shares up 78% YTD. Stock hit record intraday high of $218.50 last Thurs

8 of 11 brokerages rate BWXT "strong buy" or "buy", 3 rate "hold"; median PT is $200, LSEG data reflects