BUZZ-Commvault Systems shares down on $750 mln convertible debt sale plans

Reuters
09/02
BUZZ-Commvault Systems shares down on $750 mln convertible debt sale plans

** Shares of cybersecurity co Commvault Systems CVLT.O down 2.3% at $182.31 before the bell after planned capital raise news

** Tinton Falls, New Jersey-based CVLT announces private offering of $750 mln 5-yr convertible bonds (CBs)

** Co says intends to use net proceeds for general purposes, which may include acquisitions or strategic investments in complementary businesses or technologies

** It also plans to use portion of proceeds to fund cost of capped calls, derivative tranactions employed to mitigate dilution, and up to about $125 mln to repurchase its stock from CB investors

** With ~44.5 mln shares outstanding, co has ~$8.3 bln market cap, per LSEG data

** Shares on Fri ended down 0.6% at $186.65. YTD, shares up ~24% vs 11% advance for the Nasdaq Composite .IXIC

** Of 12 analysts covering CVLT, 9 rate "strong buy" or "buy" and 3 rate "hold"; median PT is $213.50, 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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