BUZZ-Bandwidth slides on $275 mln convertible debt deal

Bandwidth Inc. Class A

Bandwidth Inc. Class A

BAND

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** Cloud communications firm Bandwidth's BAND.O shares down 7.6% before the bell at $60.40 after capital raise news

** BAND announces private offering of $275 mln convertible bonds (CBs) due 2032

** Co intends to use net offering proceeds to repurchase a portion of outstanding 0.5% CBs due 2028, any remainder to repay debt, among other purposes

** It also intends to use some proceeds to pay cost of capped call transactions to offset potential dilution, and up to $10 mln to repurchase shares to facilitate hedging by investors in the new CBs

** Raleigh, North Carolina-based BAND has about $2 bln market cap

** Stock closed up 1.6% on Fri and has more than quadrupled YTD

** 4 of 5 analysts rate the stock "strong buy" or "buy", 1 "hold"; median PT $57.50, per LSEG data


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