BUZZ-Dropbox shares fall due to issuance of $1.1 billion convertible bonds

November 10 - ** Cloud storage service provider Dropbox (DBX.O) shares fell 2.5% in pre-market trading on Tuesday to $31.75, after the company completed financing

** Earlier on Tuesday, DBX announced pricing (link), with plans to raise $1.1 billion through a private placement of convertible bonds (CBs) with a coupon rate of 1.25%, maturing on December 1, 2031

** The conversion price of $40.73 represents a 25% premium over the previous trading day's closing price

** On Monday, DBX shares closed down 6% after the company (link) announced a $1 billion bond issuance, with at least $750 million of the proceeds to be used for repaying borrowings under its credit facility

** The company also intends to use approximately $103.1 million of the net proceeds to cover the cost of hedging transactions, and around $175 million to repurchase its shares from convertible bond holders

** As of Monday, the stock had risen 17% year-to-date, while the Nasdaq Index increased about 9% over the same period .IXIC

** According to data from London Stock Exchange Group (LSEG), the average rating from 10 analysts is "hold"; the median target price is $33

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