Dropbox shares fall on $1.1 bln convertible bond sale

By Reuters News

** Shares of cloud storage provider Dropbox DBX.O down 2.5% at $31.75 premarket on Tues after capital raise secured

** DBX early Tues announced pricing private offering of $1.1 bln 1.25% convertible bonds (CBs) due Dec 1, 2031

** Conversion price of $40.73 represents 25% premium over stock's last close

** DBX shares finished down 6% on Mon after co launched $1 bln offering to repay at least $750 mln of borrowings under credit facility

** Co also plans to use ~$103.1 mln of net proceeds to pay cost of hedge transactions, and approx $175 mln to repurchase its stock from investors in the CBs

** Through Mon, shares up 17% YTD compared to ~9% gain in the Nasdaq .IXIC

** Avg rating of 10 analysts is "hold"; median PT $33, per LSEG

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