AI storage firm Backblaze stabilizes after boosted $175 mln convertible offering
BLZE•Recent AI storage deal and analyst sentiment
** In June, Backblaze inked a five-year, $335 million AI storage deal with neocloud firm CoreWeave.
** Through Wednesday, Backblaze stock had nearly quadrupled over the past six months.
** Six of seven analysts rate the stock "strong buy" or "buy," and one rates it "hold"; the median price target is $23, per LSEG data.
Backblaze shares steady after upsized convertible offering
** AI storage platform Backblaze ** shares were trading around the flat line premarket on Thursday after the company priced an above-target raise.
** San Francisco-based Backblaze late Wednesday announced pricing of a private offering of $175 million of 0% convertible bonds due Aug. 15, 2031.
** The conversion price of $21.94 is a 30% premium to the stock's last sale of $16.88 on Wednesday.
** Backblaze shares closed down 12% on Wednesday after the company late Tuesday unveiled a $150 million offering for general corporate purposes and capex, with Bank of America as lead bookrunner.
** The company intends to use approximately $15.2 million of net proceeds to pay the cost of capped calls; the cap price of $33.76 is double the stock's last close.
