DigitalOcean slides after unveiling stock-for-notes refinancing
DOCN•Stock performance and analyst sentiment
Broomfield, Colorado-based DOCN has about 104.4 million shares outstanding for a market cap of about $13 billion as of Tuesday.
With the decline, the stock is up 138% year to date.
Twelve of 16 brokerages rate the stock "strong buy" or "buy," and four rate it "hold"; the median price target is $178, up from $80 on Apr. 15, per LSEG.
DigitalOcean shares fall after refinancing plan
Cloud computing platform DigitalOcean's DOCN.N shares were down 9.5% to $114.35 on Wednesday as it looks to refinance some debt.
Company announces repurchase of convertible notes
DOCN early Wednesday announced a repurchase of up to $500 million principal of its outstanding $625 million 0% convertible notes due 2030 in privately negotiated transactions.
The repurchases are to be funded by a registered direct offering of DOCN's stock to holders of the notes.
The repurchase price will be determined based on the volume-weighted average price (VWAP) of DOCN's stock.
J. Wood Capital Advisors is acting as financial advisor for the stock placement.
