Natgas producer BKV slides on planned $400 mln convertible offering
BKV•Use of proceeds and market backdrop
The company intends to use net proceeds for general purposes, including debt repayment and capex.
It also intends to use some proceeds for capped call transactions, employed to help mitigate potential dilution, and up to $35 million to repurchase its shares.
BKV shares, which have about a $3 billion market cap, were down 1.4% year to date through Tuesday's close.
All 11 analysts covering the stock are bullish; the median price target is $35, according to LSEG.
BKV shares fall after convertible offering plans
Natural gas producer BKV Corp's BKV.N shares were down 6.5% at $25.01 in premarket trading on Wednesday as it seeks a capital raise.
The Denver, Colorado-based firm announced a private offering of $400 million of convertible bonds due Oct. 15, 2031.
