Cloudflare dips after $2.2 bln convertible debt sale
NET•Cloudflare shares fall after convertible notes pricing
-
Shares of cloud services firm Cloudflare NET.N were down 1.2% to $307 in premarket trading on Tuesday after the company clinched a capital raise.
-
The San Francisco, California-based firm early Tuesday announced pricing of a private offering of $2.175 billion of 0% convertible bonds due Aug. 15, 2031.
-
The initial conversion price was set at $496.94, 60% above the stock's last sale of $310.59 on Monday.
-
NET shares finished up 3.4% on Monday after the company launched the offering for general corporate purposes, including capital expenditures, debt repayment and potential acquisitions.
-
The company also intends to use about $225.8 million of net proceeds to pay for capped call transactions; the cap price of $854.12 is a 175% premium to the stock's last close.
-
Through Monday, the stock was up 57.5% year to date following an 83% surge in 2025.
-
The average rating of 36 analysts is "buy"; the median price target is $355, per LSEG.
