BUZZ-BWX Technologies down after increased $1.1 bln convertible bonds sale

Reuters
2025/11/07
BUZZ-BWX Technologies down after increased $1.1 bln convertible bonds sale

** Shares of nuclear components maker BWX Technologies BWXT.N falling for third straight day and down 2% at $194.09 on Thurs after capital raise news

** Lynchburg, Virginia-based BWXT early Thurs announced pricing private offering of $1.1 bln 0% 5-year convertible bonds

** Initial conversion price set at $262.51, 32.5% over stock's last close of $198.12

** BWXT shares on Weds dipped 1% after co unveiled $1 bln offering to fully repay debt under credit facility, remainder for general corporate purposes

** Co intends to use about $116 mln of proceeds to fund cost of entering capped call transactions; cap price of $396.24 is double the stock's last close

** With the decline on Thurs, BWXT shares up 74% YTD

** 8 of 11 brokerages rate BWXT "strong buy" or "buy", 3 rate "hold"; median PT is $200, per LSEG

(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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