Cloudflare dips after $2.2 bln convertible debt sale
BUZZ-Cloudflare dips after $2.2 bln convertible debt sale ** Shares of cloud services firm Cloudflare NET.N down 1.2% to $307 premarket on Tues after clinching capital raise
** San Francisco, California-based firm early Tues announces pricing private offering of $2.175 bln 0% convertible bonds due Aug 15, 2031
** Initial conversion price set at $496.94, 60% above stock's last sale of $310.59 on Mon
** NET shares finished up 3.4% on Mon after co launched the offering for general corp purposes, including for capex, debt repayment, potential acquisitions
** Co also intends to use approx $225.8 mln of net proceeds to pay for capped call transactions; cap price of $854.12 is 175% premium to stock's last close
** Through Mon, stock up 57.5% YTD following 83% surge in 2025
** Avg rating of 36 analysts is "buy"; median PT $355, per LSEG
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))
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