TPI Composites tracking biggest drop in 2 years on convertible notes deal

TPI Composites

28/02/2023 17:41

** TPI Composites Inc's  TPIC.O  shares down 20.6% at $11.44
on Tues after wind-blade manufacturer launches convertible
offering
    ** TPIC shares on course for biggest one-day pct drop since
Feb 26, 2021
    ** Scottsdale, Arizona-headquartered firm late Mon commenced
private $100 mln 5-yr convertible bond offering
    ** Co plans to use portion of net offering proceeds to pay
cost of capped call transactions, remainder to fund "eligible
green projects" and for working capital, capex, potential debt
repayment
    ** TPI has ~$608 mln market cap as of Mon close, per
Refinitiv data
    ** Last week, co posted bigger-than-expected loss in Q4, per
Refinitiv, saying it sees signs of returning demand in US fueled
by expected benefits of Inflation Reduction Act
    ** With move on the session, stock up ~13% YTD but has
roughly halved from 1-yr highs hit last Aug
    ** About 2.6 mln shares have traded on the session so far,
5x stock's 25-DMA volume, per Refinitiv

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