Rubrik edges up after $1 bln convertible debt sale

Rubrik

11/06/2025 12:59

** Shares of cybersecurity firm Rubrik RBRK.N, backed by Microsoft MSFT.O, up 0.1% premarket to $87.65 after capital raise

** Palo Alto, California-based Rubrik early Weds announced pricing offering of $1 bln 0% 5-yr convertible bonds

** Initial conversion price of $124.76 is 42.5% above stock's last close

** RBRK shares on Tues closed down 6% at $87.55 after co announced $1 bln offering to fully repay ~$328 mln of outstanding loans under its credit agreement, and for potential acquisitions or strategic investments, among other purposes

** Co expects to use $77 mln of proceeds to pay for capped calls to offset dilution; cap price is initially at $175.10, which represents 100% premium to last sale

** Through Tues, stock up 34% YTD

** Of 21 analysts covering RBRK, recommendation breakdown is 18 "strong buy" or "buy" and 3 "hold" ratings; median PT of $110 up from $80 a month ago - LSEG latest data

** Co IPOd in Apr 2024 at $32

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))