Natgas producer BKV drops on boosted $500 mln convertible bond sale
BKV•Use of proceeds and share performance
BKV shares ended down about 10% on Wednesday after the company launched a $400 million offering for general purposes, including debt repayment and capex.
It also intends to use about $56.3 million of proceeds to fund capped call transactions and up to $35 million to repurchase its shares to offset potential dilution.
At Wednesday's close, BKV shares were down 11% year to date.
All 11 analysts covering the stock are bullish, with a median price target of $35, according to LSEG.
BKV shares fall after upsized convertible bond pricing
Natural gas producer BKV Corp's BKV.N shares were down 3.1% at $23.35 before the bell on Thursday after clinching a capital raise.
Denver, Colorado-based BKV late Wednesday announced pricing of a private offering of $500 million 1.625% convertible bonds due Oct. 15, 2031.
The conversion price of $31.93 represents a 32.5% premium over the stock's last close of $24.10.
