Procore Upsizes Convertible Note Offering to $825M, Adds $175M Buyback
PCOR sits 46% above its 52-week low of $38.03.
Summary
Procore priced an upsized $825M convertible note offering, up from the $750M announced yesterday. The notes carry a 0% coupon and convert at $82.89, a 50% premium to the last sale. Net proceeds of ~$804M will fund the DroneDeploy acquisition, a $51M capped call, and a concurrent $175M share repurchase. The buyback and premium conversion price signal management's confidence in the stock, but the offering still adds potential dilution. This follows the July 29 announcement of the $845M DroneDeploy deal and strong Q2 results. The notes close August 6.
At the time of this announcement, PCOR was trading at $55.61 on NYSE in the Technology sector, with a market capitalization of approximately $8.3B. The 52-week trading range was $38.03 to $82.32. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: BusinessWire.