Hospitality co Civeo falls after convertible offering, Western Canada contract renewal

Civeo

02/07/2026 16:03

** Hospitality services firm Civeo's CVEO.N shares down 4.6% at $32.20 in subdued trading volume Thurs after co secured capital raise and announced contract renewal
** CVEO hits seven-week low as just about 39,000 shares exchange hands compared to stock's 10-DMA of about 231,000, per LSEG
** Workforce accommodations provider to natural resources industry late Weds announced pricing $100 mln 4.5% convertible bonds (CBs) due 2031
** CVEO expects to use $22.3 mln of net proceeds to repurchase its shares to facilitate hedging by investors in the CBs, remainder to repay debt
** It also said late Weds one of its Western Canadian JVs awarded a six-year contract renewal
** New agreement extends through June 30, 2032, superseding existing arrangement slated to expire in 2027; financial details of contract not disclosed
** Houston, Texas-headquartered CVEO, which also does business in Australia, has roughly $370 mln market cap
** Despite the decline, stock up about 41% YTD
     

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