AI infrastructure firm WhiteFiber tumbles on $270 mln convertible bond sale
BUZZ-AI infrastructure firm WhiteFiber tumbles on $270 mln convertible bond sale ** AI infrastructure firm WhiteFiber's WYFI.O shares tumble 23.6% to $20.69 before the bell on Weds after capital raise secured
** New York City-headquartered WYFI announces pricing private offering of $270 mln 5% convertible bonds (CBs) due Sept 1, 2032
** Offering size increased from $250 mln; conversion price of $33.84 represents 25% premium over stock's last sale of $27.07 on Tues
** Co intends to use approx $118.5 mln of net offering proceeds to repurchase $198.15 mln principal amount of its 4.5% CBs due 2031
** Remaining proceeds to be used primarily for data center expansion, potential acquisitions, partnerships and joint ventures, among other uses
** WYFI shares fell nearly 11% on Tues, giving co roughly $1 bln market cap, and cutting YTD gain to 71%
** Co went public last Aug in $159 mln IPO priced at $17
** 9 of 10 analysts rate the stock "strong buy" or "buy", 1 "hold"; median PT $38, per latest LSEG data
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))
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AI infrastructure firm WhiteFiber tumbles on $270 mln convertible bond sale