BUZZ-Akamai Technologies shares fall after announcing $2.2 billion convertible bond offering

November 9 - ** Cloud services company Akamai Technologies (AKAM.O) saw its shares fall 7.3% to $77 in pre-market trading after reports that the company plans to raise funds

** AKAM announced it will privately issue two tranches of $1.1 billion each in convertible bonds (link), with one tranche maturing on November 15, 2028, and the other on November 15, 2031

** The company plans to use the net proceeds from this offering to repay part of its outstanding $1.15 billion convertible bonds with a coupon rate of 0.375% maturing in 2027 upon maturity, pay cash due as a result of early conversion of the 2027 convertible bonds, and fund capital expenditures for its cloud infrastructure services business

** The company also plans to use part of the raised funds to cover the costs of convertible bond hedge transactions

** Based in Cambridge, Massachusetts, AKAM has a market capitalization of about $12 billion

** As of Friday's close, the company's stock was down about 5% year-to-date, while the S&P 500 Technology Index (.SPLRCT) was up about 11% and the Nasdaq Index (.IXIC) was up nearly 6%

** According to LSEG data, the average rating from 25 analysts is "buy"; the median price target is $120, down from $155.39 a month ago

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