Cybersecurity firm Tenable tumbles after unveiling $650 mln convertible
TENB•Use of proceeds and dilution mitigation
The company intends to use net offering proceeds to fully repay term loans under its credit facility, and for general purposes, including additional share repurchases, acquisitions or investments, among other purposes.
Tenable also plans to use some proceeds to pay the cost of capped call transactions and repurchase up to $200 million of its shares to help mitigate potential dilution.
Tenable, which joined the S&P SmallCap 600 index .SPCY on Aug. 31, has a market capitalization of about $3.7 billion. Through Wednesday's close, the stock was up 43% year to date.
Tenable shares fall after convertible offering
Shares of cybersecurity exposure management firm Tenable Holdings Inc. TENB.O fell 7.6% premarket on Thursday to $31.10, their lowest since July 30, as it seeks a capital raise.
Columbia, Maryland-based Tenable is offering privately $650 million of convertible bonds due 2031.
