Repay tumbles after $260 mln convertible debt deal priced
** Repay Holding's RPAY.O shares down 14.8% premarket to $8.70, over 4-mth low, after fintech firm's capital raise to pay down some debt
** Atlanta-based payment solutions provider late Tues announced pricing of private offering of $260 mln 2.875% convertible bonds (CBs) due 2029
** Initial conversion price of $13.02 represents 27.5% premium to stock's last close of $10.21
** Repay plans to use ~$35 mln of net proceeds to pay for capped calls, remainder to purchase portion of outstanding 0% CBs due 2026
** Also, co expects to use ~$40 mln to repurchase about 3.9 mln shares of its common stock
** Through Tues, RPAY shares up ~20% YTD, giving co market cap of ~$994 mln, per LSEG data
** 6 of 10 analysts rate RPAY "strong buy" or "buy", rest "hold" with median PT of $12.50 - LSEG
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
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