BUZZ-Cybersecurity co Check Point stabilizes after increased $1.75 bln convertible bond sale
Check Point Software Technologiesstabilized at $191 premarket after raising $1.75 billion through a 0% 5-year convertible bond sale. The initial conversion price is $243.65, a 27.5% premium to the last close. The company plans to use the proceeds for capped call transactions, share repurchases, potential M&A, and new product development. CHKP shares rose 2.1% after falling 3.5% on Wednesday. The stock is up 2% YTD. 14 of 37 analysts rate it as 'strong buy' or 'buy', with a median price target of $225.
Shares of Check Point Software Technologies (CHKP.O) trading flat at $191 premarket after capital raise
Israeli cyber security solutions provider
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 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 (Lance Tupper is a Reuters market analyst. The views expressed are his own)
