Box drops on $400 mln convertible debt deal plans

Box

16/09/2024 21:55

** Box Inc  BOX.N  shares down 3.1% at $32.40 post-market as
cloud firm looks to raise capital to repay near-term convertible
debt
    ** Co announces private offering of $400 mln 5-yr
convertible bonds (CBs)
    ** It plans to use portion of net proceeds to pay for capped
calls, remainder to partially repay its $345 mln outstanding
principal 0% CBs due 2026
    ** BOX on Mon closed up 0.5% at $33.45 for ~$4.8 bln market
cap, per LSEG
    ** Last month, co posted Q2 profit beat, and forecast
current-qtr earnings above consensus, citing accelerating
billings growth and strong margins
    ** YTD, stock up ~31% YTD including ~27% gain this qtr

 (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))