PureCycle Tech tumbles on $395 mln stock, convertible deals
BUZZ-PureCycle Tech tumbles on $395 mln stock, convertible deals ** Plastic recycling firm PureCycle Technologies' PCT.O shares down 14.4% premarket on Thurs to $8.46 after $395 mln raise
** PCT stock on course to fall for fifth straight day
** Co early Thurs announces pricing concurrent offerings of $250 mln 4.75% convertible bonds (CBs) due 2032 and ~17.66 mln shares at $8.21 for $145 mln
** Equity offering price represents 17% discount to stock's last close; initial conversion price on the CBs is $11.08
** PCT intends to use net offerings proceeds to repurchase portion of its 7.25% CBs due 2030, for working capital and other purposes
** Morgan Stanley sole bookrunner
** Orlando, Florida-based PCT has ~180.8 mln shares outstanding
** At Weds close, shares up 15% YTD including 90% surge QTD
** Of 6 analysts covering the stock, 3 rate "buy", 3 "hold"; median PT $12, according to LSEG data
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))