** AI data center infrastructure provider Penguin Solutions' PENG.O shares down 7.7% to $71.80 after clinching capital raise

** PENG late Tues announced pricing private offering of $650 mln 0% convertible bonds (CBs) due Aug 1, 2031

** Initial conversion price of $116.70 represents 50% premium to stock's last close of $77.80

** Co intends to use approx $298.1 mln of net offering proceeds to repurchase its 2% CBs due 2029 and 2% CBs due 2030, $100 mln to repay credit agreement, remainder for general purposes

** It also expects to use approx $42.6 mln to fund capped call transactions to offset potential dilution

** Fremont, California-based PENG has about $3.7 bln current market cap

** Stock now up 170% over the past three months and hit record intraday high of $89.86 last Thurs

** 7 of 8 analysts rate the stock "strong buy" or "buy", 1 "hold"; median PT $77.50, per LSEG data