Bill Holdings drops on planned $1 bln convertible debt deal

BILL Holdings

02/12/2024 21:23

** Shares of Bill Holdings  BILL.N  drop 5% to $85.01 in
extended trading as financial software platform looks to raise
capital
** San Jose, Calif., firm says offering privately $1 bln
convertible bonds (CBs) due 2030
    ** Co plans to use portion of net proceeds to pay for capped
calls, to repurchase portion of its existing 2025 and/or 2027
CBs, and buy back up to $200 mln of its stock
    ** BILL shares on Mon closed down 0.8% at $89.52, giving co
market cap of about $9.3 bln, per LSEG
** Stock has surged ~36% since co on Nov 7 raised its FY25 rev
and profit forecasts, after posting fiscal Q1 beat
    ** YTD, stock up 10%

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