Natgas producer BKV drops on boosted $500 mln convertible bond sale
BUZZ-Natgas producer BKV drops on boosted $500 mln convertible bond sale ** Natural gas producer BKV Corp's BKV.N shares down 3.1% at $23.35 before the bell on Thurs after clinching capital raise
** Denver, Colorado-based BKV late Weds announced pricing private offering of $500 mln 1.625% convertible bonds due Oct 15, 2031
** Conversion price of $31.93 represents 32.5% premium over stock's last close of $24.10
** BKV shares ended down ~10% on Weds after co launched $400 mln offering for general purposes, including debt repayment and capex
** It also intends to use about $56.3 mln of proceeds to fund capped call transactions and up to $35 mln to repurchase its shares to offset potential dilution
** At Weds close BKV shares lost 11% YTD
** All 11 analysts covering the stock are bullish; median PT $35, per LSEG
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))