SentinelOne slides on planned $1.25 billion convertible offering
S•SentinelOne shares fell 9% before the bell to $23.35 after it announced a private offering of $1.25 billion in 0% convertible bonds due 2031. The company also plans to repurchase $150 million of its shares from investors in the offering.
1. Offering details
SentinelOne said it intends to use the net proceeds for general corporate purposes, stock buybacks, working capital, capital expenditures and potential acquisitions. It also plans to use some proceeds to pay for capped call transactions to mitigate dilution and to repurchase $150 million of its shares from investors in the convertible bonds.
2. Shares and analyst ratings
The Mountain View, California-based company had a market capitalization of nearly $9 billion. Its shares had surged about 71% year to date through Monday's close. Nineteen of 37 analysts rated the stock “strong buy” or “buy,” while 18 rated it “hold”; the median price target was $25, up from $19 three months earlier.
