Advanced Energy falls on $1 bln convertible bond sale plans
Shares of precision power solutions firm Advanced Energy Industries AEIS.O down 1.7% before the bell to $333.50 as it looks to raise capital
Denver, Colorado-based firm announces private offering of $1 bln convertible bonds (CBs) due 2031
Co intends to use a portion of net offering proceeds to repurchase its outstanding 2.5% CBs due 2028, and remainder for general corp purposes
It also plans to use some proceeds to pay cost of capped calls, derivative transactions employed to mitigate dilution
AEIS has roughly $13 bln market cap, based on ~38 mln shares outstanding
Through Tues close, stock up 62% YTD
On May 4, co reported Q1 rev rose 26% yr/yr to $511 mln, surpassing LSEG consensus, as data center computing rev more than doubled
9 of 12 analysts rate the stock "strong buy" or "buy", 3 "hold"; median PT of $392.50 up from $330 a month ago, per LSEG data
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