BUZZ-DoorDash edges down after announcing $2 bln convertible debt deal

Reuters
05-27
BUZZ-DoorDash edges down after announcing $2 bln convertible debt deal

** DoorDash's DASH.O shares down 0.1% premarket at $205.85 as meal delivery platform seeks capital raise

** San Francisco, California-based firm announces private offering of $2 bln 5-yr convertible bonds

** It plans to use net proceeds for general purposes, including potential acquisitions and share repurchases

** Co says also intends to use portion of proceeds to fund cost of hedge transactions to offset share dilution until at least a targeted 125% premium to the current stock price

** Earlier this month, DoorDash said it will buy British rival Deliveroo ROO.L in deal valued at $3.9 bln, and would buy software firm SevenRooms for ~$1.2 bln

** DoorDash has ~$87.4 bln market cap, per LSEG data

** DASH shares on Fri closed up 2.6% at $206.15, up 23% YTD

** Of 41 analysts covering DASH, recommendation breakdown is 29 "strong buy" or "buy", rest "hold" and median PT is $223.50, latest LSEG data shows

(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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