Smart Global drops after convertible debt deal unveiled
** Shares of Smart Global Holdings SGH.O down 5% at $22.24 on Thurs as memory chipmaker seeks capital raise
** Co late Weds announced private offering of $150 mln 6-yr convertible bonds (CBs)
** It plans to use net proceeds to pay for capped calls, repurchase portion of existing 2.25% CBs due 2026
** Co has ~$1.2 bln market cap, per LSEG
** Last month, it announced $200 mln investment from South Korea's SK Telecom 017670.KS to improve its financial flexibility, and intent to rebrand as Penguin Solutions
** With move on the session, SGH up 17.5% YTD vs Nasdaq's .IXIC 16% advance
** All 4 analysts covering SGH are bullish and their median PT is $33.50, up from $27.25 on Jul 1
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
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