A10 Networks: A10 Networks Shares Drop After Offering of Convertible Notes Prices

By Robb M. Stewart A10 Networks' shares were sharply lower after the technology company priced a roughly $200 million offering of convertible debt. In morning trading, the security-and-infrastructure-solutions company's shares were 17% lower at $16.17. The stock is now down 12% so far this year, and its advance over the past 12 months has narrowed to 10%. A10 Networks said it priced an offer to institutional buyers of 2.75% convertible senior notes due 2030. The issuance and sale of the notes are scheduled to settle on Monday, and the San Jose, Calif., company granted the initial purchasers an option to buy up to an additional $25 million of notes in total within a 13-day period from the date the notes are first issued. The initial conversion rate on the notes is 42.6257 shares per $1,000 principal amount of notes, which represents an initial conversion price of roughly $23.46 a share. The company estimated net proceeds from the offering of up to $218.1 million if the option to buy additional notes is fully exercised. A10 said it expects to use about $44.2 million of the proceeds to buy back its shares, and the remainder is slated for working capital and other general corporate purposes. Write to Robb M. Stewart at robb.stewart@wsj.com (END) Dow Jones Newswires 03-13-25 1138ET By Robb M. Stewart A10 Networks' shares were sharply lower after the technology company priced a roughly $200 million offering of convertible debt. In morning trading, the security-and-infrastructure-solutions company's shares were 17% lower at $16.17. The stock is now down 12% so far this year, and its advance over the past 12 months has narrowed to 10%. A10 Networks said it priced an offer to institutional buyers of 2.75% convertible senior notes due 2030. The issuance and sale of the notes are scheduled to settle on Monday, and the San Jose, Calif., company granted the initial purchasers an option to buy up to an additional $25 million of notes in total within a 13-day period from the date the notes are first issued. The initial conversion rate on the notes is 42.6257 shares per $1,000 principal amount of notes, which represents an initial conversion price of roughly $23.46 a share. The company estimated net proceeds from the offering of up to $218.1 million if the option to buy additional notes is fully exercised. A10 said it expects to use about $44.2 million of the proceeds to buy back its shares, and the remainder is slated for working capital and other general corporate purposes. Write to Robb M. Stewart at robb.stewart@wsj.com (END) Dow Jones Newswires 03-13-25 1138ET