Advanced Energy falls on $1 bln convertible bond sale plans

Advanced Energy Industries

13/05/2026 13:25

** Shares of precision power solutions firm Advanced Energy Industries AEIS.O down 1.7% before the bell to $333.50 as it looks to raise capital

** Denver, Colorado-based firm announces private offering of $1 bln convertible bonds (CBs) due 2031

** Co intends to use a portion of net offering proceeds to repurchase its outstanding 2.5% CBs due 2028, and remainder for general corp purposes

** It also plans to use some proceeds to pay cost of capped calls, derivative transactions employed to mitigate dilution

** AEIS has roughly $13 bln market cap, based on ~38 mln shares outstanding

** Through Tues close, stock up 62% YTD

** On May 4, co reported Q1 rev rose 26% yr/yr to $511 mln, surpassing LSEG consensus, as data center computing rev more than doubled

** 9 of 12 analysts rate the stock "strong buy" or "buy", 3 "hold"; median PT of $392.50 up from $330 a month ago, per LSEG data

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

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