BUZZ-Semiconductor firm Ultra Clean falls after increased $525 mln convertible bond deal

Reuters02-27
BUZZ-Semiconductor firm Ultra Clean falls after increased $525 mln convertible bond deal

** Semiconductor equipment and testing firm Ultra Clean Holdings' UCTT.O shares down 3.8% premarket to $57.22 after above-target raise

** Hayward, California-based firm late Thurs announced pricing private offering of $525 mln 0% 5-yr convertible bonds

** Initial conversion price set at $84.75, 42.5% above stock's last close of $59.47

** UCTT shares finished down 11.7% on Thurs after co late Weds announced $400 mln offering for working capital, to prepay a portion of term loan and other general corporate purposes

** Co to use approx $40 mln of net offering proceeds to repurchase 627,608 shares to facilitate hedges and pay approx $22 mln to fund cost of capped calls

** Through Thurs, UCTT shares up 135% YTD. Stock hit record intraday high of $73.80 on Weds

** All 4 analysts are bullish; median PT of $77.50 up from $35 a month ago, per LSEG

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))

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