Semiconductor firm Ultra Clean drops after announcing $400 mln convertible offering
25/02/2026 21:45
** Shares of semiconductor equipment and testing firm Ultra Clean Holdings UCTT.O down 5.1% to $63.90 post-market after capital raise news ** Hayward, California-based firm announces private offering of $400 mln 5-yr convertible bonds ** Co plans to use net offering proceeds for working capital, prepay a portion of term loan and other general corporate purposes ** It also intends to repurchase up to $40 mln of its stock to facilitate hedges and pay for cost of capped calls, derivative transactions employed to help offset potential dilution ** Co has ~45.5 mln shares outstanding for about $3 bln market cap ** UCTT shares on Weds ended down 6.4% at $67.32, trimming YTD gain to 166% ** All 4 analysts are bullish; median PT of $77.50 up from $35 a month ago, per LSEG (Lance Tupper is a Reuters market analyst. The views expressed are his own) ((lance.tupper@tr.com 1-646-279-6380))