Alarm.com dips on planned convertible debt deal

Alarm.com Holdings

28/05/2024 16:08

** Alarm.com's shares  ALRM.O  down 2% at $65.80 on Tues as
smart-home tech provider seeks capital raise
    ** Co early Tues announced private offering of $375 mln 5-yr
convertible bonds
    ** It expects to use net offering proceeds to pay cost of
capped call transactions, to repurchase up to $75 mln of stock
concurrently with pricing
    ** Remainder of proceeds to be used for general purposes,
including acquisitions or strategic investments, while ALRM said
it does not currently have any plans for any such acquisitions
or investments
    ** Co earlier this month reported Q1 rev increased 6.5%
yr/yr to $223 mln, topping LSEG est of $219 mln, and adj EBITDA
of $37 mln, in-line with Street
    ** With move on the session, shares up 2% YTD and up about
30% over the past 12 months
    ** Co has current market cap of ~$3.3 bln

 (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))