Cohu drops after upsized $260 mln convertible bonds offering

Cohu

25/09/2025 15:04

** Shares of semiconductor testing firm Cohu Inc COHU.O down 3.8% at $19.74 early Thurs after raising more capital than planned

    ** Poway, California-based COHU late Weds said it priced private offering
     of $260 mln 1.5%
    convertible bonds due 2031

    ** Initial conversion price set at $27.18, 32.5% above stock's last close of $20.51

    ** COHU shares on Weds finished down 10% for their biggest daily decline since Apr 3, 2025 as co marketed $200 mln offering for general corp purposes

** It also intends to use $28.4 mln to pay cost of capped calls, derivative transactions employed to help reduce potential dilution

** With the decline on Thurs, COHU shares down about 26% YTD

    ** 4 of 5
     analysts rate stock "strong buy" or "buy", 1 has "hold"; median PT is $26.50, per LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))