WisdomTree wavers after $525 mln convertible bond offering for M&A

Asset manager WisdomTree's WT.N shares down marginally before the bell to $13.46 after securing acquisition-related raise

New York City-based WT announces pricing private offering of $525 mln 4.5% convertible bonds (CBs) due Oct 1, 2031

Initial conversion price of $21.58 represents 60% premium to stock's last close of $13.49

WT intends to use about $200 mln of net offering proceeds to pay for previously announced acquisition of Atlantic House Holdings, a London-based, specialized derivative-focused investment manager

Also plans to use ~$303 mln of proceeds to pay cash consideration to exchange its 3.25% CBs due 2029, and any remainder for other general purposes including repayment of debt and other outstanding CBs

Co has $1.9 bln market cap

Through Mon, stock up nearly 11% YTD and off ~24% from one-year intraday high of $17.68 from Mar 5

5 of 7 analysts rate the stock "strong buy" or "buy", 2 "hold"; median PT $20, per LSEG data