Dropbox dips on planned $1 bln convertible debt sale

By Reuters News

** Cloud storage provider Dropbox's DBX.O shares down 2% at $33.95 before the bell on Mon as it seeks capital raise

** DBX offering privately $1 bln convertible bonds (CBs) due 2031

** It intends to use net offering proceeds to repay, along with cash on hand, at least $750 mln of borrowings under credit facility

** Co also intends to use some proceeds to pay cost of hedge transactions and repurchase approx $175 mln of its stock from investors in the CBs

** San Francisco-based DBX has about $7.5 bln market cap

** Co late Thurs posted Q3 beat and said it will acquire AI-focused storage platform Tigris Data for about $350 mln in cash

** At Fri close, stock up ~25% YTD, outperforming Nasdaq's .IXIC ~11% gain

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

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