Dynatrace up after $1.25 bln convertible offering prices
DT•Dynatrace shares rise after pricing $1.25 billion exchangeable notes
AI-powered cloud monitoring software provider Dynatrace shares were up 1.2% at $48.18 before the bell on Tuesday after the company clinched a capital raise.
The Boston, Massachusetts-based firm announced pricing of a private offering of $1.25 billion of 0% exchangeable notes due Sept. 1, 2031.
The exchange price of $64.27 represents a 35% premium over the stock's last sale of $47.61 on Monday.
DT shares fell 3% on Monday after the company unveiled the offering for general corporate purposes.
It intends to use about $145.9 million of net proceeds to pay the cost of hedge transactions, and expects to use about $134.7 million to repurchase 2.83 million shares from certain purchasers of the notes.
The offering comes a week after Dynatrace agreed to acquire AI observability platform Arize for $915 million, comprising $815 million in cash and equity awards to Arize employees.
Through Monday, DT shares were up about 19% over the past three months, putting them up about 10% year to date.
The average rating of is "buy"; median price target , according to LSEG data.
