BUZZ-Fastly slides on planned $125 convertible bond sale
Fastly's shares fell 6.3% post-market to $11 after announcing a $125 million convertible bond sale to reduce debt. The company plans to use the proceeds to repurchase outstanding 0% convertible bonds due 2026 and cover costs of capped calls to offset potential dilution. Fastly has a market cap of $1.8 billion, with its stock up 41% over the past month. Analyst recommendations include 1 "buy", 8 "hold", and 1 "sell", with a median price target of $10.75.
Shares of content-delivery network firm Fastly (FSLY.N) down 6.3% post-market to $11 as co looks to raise capital to reduce debt
San Francisco-based FSLY private offering of $125 mln 5-yr convertible bonds (CBs)
Co plans to use net offering proceeds to repurchase a portion of its outstanding 0% CBs due 2026
It also intends to use a portion of proceeds to pay cost of capped calls, derivative transactions employed to help offset potential dilution
FSLY has about $1.8 bln market cap
FSLY shares on Weds closed up 0.8% at $11.74. Stock has gained 41% over the past month, putting it up 24% YTD
Of 10 analysts covering FSLY, recommendation breakdown is 1 “buy”, 8 “hold” and 1 “sell”; median PT of $10.75 up from $7.75 a month ago, per LSEG data (Lance Tupper is a Reuters market analyst. The views expressed are his own)
