Nutanix announces convertible deal with buyback, shares tick lower

Nutanix

11/12/2024 16:11

** Shares of Nutanix  NTNX.O  down 0.2% at $64.03 on Weds as
hybrid cloud computing co seeks capital raise
** San Jose, California-based NTNX late Tues said offering
privately $750 mln 5-yr convertible bonds (CBs)
     ** It intends to use net offering proceeds to repurchase
portion of 0.25% CBs due 2027 from certain holders, and
repurchase up to $200 mln of its stock in negotiated
transactions with institutional investors
    ** Co plans to remaining proceeds for general purposes,
including potential acquisitions
    ** With ~267.9 mln shares outstanding, co has roughly $17
bln market cap, per LSEG
** Two weeks ago, co reported fiscal Q1 top and bottom-line beat
as ARR (annual recurring revenue) grew 18% y/y, highlighting its
expanded partnership with Amazon's  AMZN.O  cloud services unit,
AWS
    ** NTNX shares fell prior four sessions. Still, stock up
nearly 35% YTD vs the Nasdaq's  .IXIC  33% advance
    ** Avg rating among 17 analysts is "buy": median PT of $83
up from $74.50 a month ago - LSEG

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