DigitalOcean down after debt-for-stock swap deal
BUZZ-DigitalOcean down after debt-for-stock swap deal ** Cloud computing platform DigitalOcean's DOCN.N shares down 3% to $116.03 premarket on Thurs after co refinances some debt
** DOCN announces registered direct offering of ~12.5 mln shares at $117.54, per an SEC filing
** Co intends to use net proceeds of approx $1.47 bln, along with cash, to repurchase approx $471.83 mln principal of its outstanding $625 mln 0% convertible notes due 2030 in privately negotiated transactions with some holders of the notes
** Offering price of $117.54 equals the VWAP of DOCN's stock on Weds, according to the filing, Stock finished down 5.3% at $119.65 in prior session
** Broomfield, Colorado-based DOCN early Weds unveiled the transaction, which it said was expected to reduce net leverage with minimal change in cash or shares outstanding, adding that it creates capacity to expand its AI-Native Cloud
** At Weds close, stock up ~149% YTD, giving co about $12.5 bln market cap
** Avg rating of 16 analysts is "buy"; median PT $178, per LSEG data
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))