BUZZ-Fintech co Dave wavers after boosted $175 mln convertible bond offering

Reuters03-05
BUZZ-Fintech co Dave wavers after boosted $175 mln convertible bond offering

** Banking app Dave's DAVE.O shares trading in and out of positive territory premarket after it secures more capital than targeted

** Los Angeles, California-based DAVE early Thurs announced pricing private offering of $175 mln 0% 5-yr convertible bonds

** Initial conversion price of $279.13 is 32.5% premium to stock's last close of $210.67

** DAVE shares rose for seventh straight session on Weds, closing up 0.9% after co unveiled $150 mln offering for general purposes, including share repurchases

** Co to use proceeds to repurchase 334,000 shares for approx $70.5 mln to facilitate hedging, and use ~$15 mln to fund capped calls

** Initial cap price of $421.34 is double stock's last sale on Weds

** Through Weds, stock down 5% YTD but up 133% over the past 12 months

** All 10 analysts are bullish on the stock and their median PT of $310 implies 47% upside to last close, per LSEG data

(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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