Cybersecurity co Check Point stabilizes after increased $1.75 bln convertible bond sale

Shares of Check Point Software Technologies CHKP.O trading flat at $191 premarket after capital raise

Israeli cyber security solutions provider announced private offering of $1.75 bln 0% 5-yr convertible bonds

Initial conversion price of $243.65 represents 27.5% premium to stock's last close of $191.10

CHKP shares fell as much as 3.5% on Weds before finishing session up 2.1% after co unveiled a $1.5 bln offering late Tues

Co intends to use $168 mln of net offering proceeds to pay the cost of capped call transactions to offset potential dilution, and use $225 mln to repurchase about 1.18 mln of its shares

It plans to use remaining proceeds for general purposes, including additional share repurchases, potential M&A, business and new product development

Through Weds, CHKP stock up ~2% YTD

14 of 37 analysts rate the stock "strong buy" or "buy", 23 have "hold" ratings; median PT $225 - LSEG