Omnicell down after $150 mln convertible offering priced

Omnicell

20/11/2024 15:03

** Shares of medical software co Omnicell  OMCL.O  down 1.2% at
$41.90 early Weds after securing capital raise
** Fort Worth, Texas-based firm announced pricing offering of
$150 mln 5-yr convertible bonds (CBs)
    ** Initial conversion price of $57.25 represents 35% premium
to stock's close of $42.41 on Tues
    ** Co expects to use $13 mln of net proceeds to pay for
capped calls, remainder, along with cash, to repurchase for
approx $391 mln its $400 mln outstanding 0.25% CBs due 2025
** On Oct 30, shares soared 32% to close at $53.05 after
co posted big adj Q3 EPS beat and hiked its FY 2024 earnings
outlook
    ** Co has ~$1.9 bln market cap, per LSEG
    ** Including move on the session, shares up 11% YTD
    ** 9 analysts cover OMCL with 3 "buy" and 6 "hold" ratings;
median PT is $60

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