BUZZ-BlackSky plunges after announcing planned $125 mln convertible bond sale, rev warning

Reuters
07-18
BUZZ-BlackSky plunges after announcing planned $125 mln convertible bond sale, rev warning

** BlackSky Technology's BKSY.N shares plunging 24% to $21.48 in extended trading as real-time geospatial intelligence solutions provider looks to raise capital and lowers rev guidance

** Herndon, Virginia-based co announces private offering of $125 mln convertible bonds due 2033

** Co also says in a filing now expects FY25 rev of $105-$130 mln, down from prior outlookof $125-$142 mln, with reduction primarily driven by anticipated impacts of U.S. Government budget uncertainties and contract timing volatility in Q3 and Q4

** Co has ~34.85 mln shares outstanding as of June 30, per the filing, giving it roughly $985 mln market cap

** It intends to use approx $103.1 mln and $10.2 mln of net offering proceeds to repay borrowings under, and terminate, its term loan facilities

** BKSY shares on Thurs closed up 8.9% at $28.29, extending YTD gain to 162%

** All 6 analysts covering BKSY are bullish and median PT is $18, LSEG data reflects

(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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