BUZZ-A10 Networks drops after $200 mln convertible bond deal priced

Reuters
03-13
BUZZ-A10 Networks drops after $200 mln convertible bond deal priced

** Shares of A10 Networks ATEN.N down 10.7% premarket to $17.45, over three-mth low, after capital raise

** San Jose, California-based network security firm announces pricing offering of $200 mln 2.75% 5-yr convertible bonds

** Initial conversion price of $23.46 represents 20% premium to stock's last close

** It expects to use ~$44.2 mln of net offering proceeds to repurchase its shares, remainder for working capital, and other purposes, including potential future acquisitions

** Co has market cap of ~$1.4 bln, per LSEG data

** Through Weds close, stock up ~6% YTD following 40% rise in 2024. Stock hit intraday record high of $21.89 on Feb 14

(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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