Tyler Technologies ticks up after boosted $1.25 bln convertible offering

Shares of public sector software provider Tyler Technologies TYL.N up 0.9% before the bell to $314.94 after securing capital raise

Plano, Texas-based co early Tues announced pricing private offering of $1.25 bln 0.5% 5-yr convertible bonds (CBs)

Initial conversion price of $405.94 is 30% premium to stock's last close of $312.27

TYL shares finished down 3.8% on Mon after co announced $1 bln offering predominantly for general corp purposes

Co intends to use approx $162.8 mln of net proceeds to fund cost of capped calls, and approx $320.7 mln to repurchase ~1 mln of its shares to facilitate hedging by investors in the CBs

At Mon close, stock down 31% YTD and well underperforming 17% gain in S&P 500 Tech sector .SPLRCT

Software stocks have been under pressure this year, weighed down by fears of AI disruption

19 of 23 analysts rate TYL shares "strong buy" or "buy", 4 "hold"; median PT $435, per LSEG data