AI infrastructure firm WhiteFiber tumbles on $270 mln convertible bond sale
WYFI•WhiteFiber shares fall after upsized convertible bond offering
- AI infrastructure firm WhiteFiber's WYFI.O shares tumble 23.6% to $20.69 before the bell on Wednesday after the capital raise was secured.
- New York City-headquartered WhiteFiber announces pricing of an upsized $270 million private offering of 5% convertible senior notes due Sept. 1, 2032.
- The offering size was increased from $250 million; the conversion price of $33.84 represents a 25% premium over the stock's last sale of $27.07 on Tuesday.
- The company intends to use about $118.5 million of net offering proceeds to repurchase $198.15 million principal amount of its 4.5% convertible notes due 2031.
- Remaining proceeds will be used primarily for data center expansion, potential acquisitions, partnerships and joint ventures, among other uses.
- WYFI shares fell nearly 11% on Tuesday, giving the company roughly a $1 billion market cap and cutting year-to-date gain to 71%.
- The company went public last August in a $159 million IPO priced at $17.
- Nine of 10 analysts rate the stock "strong buy" or "buy," and one rates it "hold"; the median price target is $38, per the latest LSEG data.
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