BUZZ-Applied Digital drops after upsized convertible debt deal prices

Reuters10-31

** Applied Digital's shares down 5.1% to $6.98 on Thurs amid weakness in equities after co raises capital

** Wall Street selling off on Thurs as Meta, Microsoft warnings weigh, sending the Nasdaq down 2% ** Data center operator early Thurs announces pricing private offering of $375 mln 2.75% 6-yr convertible bonds

** Deal size increased form $300 mln; initial conversion price of $9.75 represents 32.5% premium to stock's last close

** Co plans to use ~$84 mln of net proceeds to fund share repurchases, ~$43 mln to pay for capped calls, rest for general purposes

** APLD has 215.4 mln shares outstanding, giving it market cap of ~$1.5 bln ** Earlier this month, co reported qtrly rev up 67% y/y to $60.7 mln, smaller-than-expected adj loss, and named new CFO

** With move on Thurs, stock up ~4% YTD after more than tripling in 2023

(Lance Tupper is a Reuters market analyst. The views expressed are his own) ((lance.tupper@thomsonreuters.com lance.tupper@tr.com 1-646-279-6380))

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment