Procore Technologies extends rally after upsized convertible for DroneDeploy buy
PCOR•Shares rise after upsized convertible pricing
- Construction management software firm Procore Technologies shares were up 2.1% to $56.43 on Tuesday after an above-target raise for an acquisition.
- PCOR was on course to rise for an eighth straight session, racking up about a 37% gain along the way.
- The Carpinteria, California-based company on Tuesday announced pricing of an upsized private offering of $825 million in 0% convertible bonds due Aug. 15, 2031.
- The offering size was boosted from $750 million; the initial conversion price of $82.89 is a 50% premium over the stock's last sale of $55.26 on Monday.
- Procore intends to use net offering proceeds to fund its $845 million cash buy of robotics and visual intelligence platform DroneDeploy, which it announced last week.
- It also plans to use $51.3 million of proceeds to pay the cost of capped calls and $175 million to repurchase its shares to facilitate hedging transactions by investors in the convertible bonds.
- With the advance, PCOR was down about 22% year to date.
- The average rating of 25 brokerages covering the stock is "buy"; median price target , per LSEG data.
