Limelight Networks falls on convertible debt deal

Edgio

23/07/2020 15:20

** Limelight Networks Inc  LLNW.O  shares down 7.1% at $6.22
after digital content delivery firm raises capital
    ** LLNW on track to fall for 3rd straight session
    ** Co prices $110 mln 5-yr convertible senior notes offering
 urn:newsml:reuters.com:*:nBw4BC3rpa
    ** Deal size increased from $100 mln; prices with 3.5%
coupon, 27.5% convertible premium to LLNW close on Weds of $6.69
    ** Co to use ~$14.4 mln of net proceeds to pay cost of
capped call transactions, remainder for working capital, general
corp purposes
    ** Limelight had market cap of ~$817 mln as of Weds close,
per Refinitiv data
    ** Six brokerages boosted their PTs after Limelight late Mon
reported Q2 beat and raised its forecast. Co said on earnings
call it benefited partly from new video streaming launches in
qtr, including Comcast Corp's  CMCSA.O  NBC Peacock and AT&T
Inc's  T.N  HBO Max  urn:newsml:reuters.com:*:nBwc5H2wva
    ** Even with fall on Thurs, LLNW is up 52% YTD
    ** Avg rating on LLNW is "buy" and median PT is $9, up from
$7.25 a month ago

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper.tr.com@reuters.net
lance.tupper@tr.com 646-223-5017))