Cerence falls on convertible debt deal

Cerence

22/06/2023 14:26

**  Cerence Inc's  CRNC.O  stock down 6.3% at $31.15
premarket as mobility software firm prices convertible debt
offering
    ** Provider of artificial intelligence (AI)-powered
assistants for connected and autonomous vehicles announces $190
mln 1.5% convertible notes due 2028
    ** Conversion price of $40.72 represents 22.5% premium to
stock's last sale of $33.24 on Weds
    ** Co plans to use ~$102 mln of net offering proceeds to
repurchase portion of its 3% convertible notes due 2025,
remainder to repay debt and for general purposes
    ** With ~40.3 mln shares outstanding, CRNC has ~$1.3 bln
market cap, per Refinitiv data
    ** YTD, stock up 79% through Weds close

 (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))