BUZZ-Dropbox shares fall due to plans to issue $1 billion in convertible bonds

November 9 - ** Cloud storage service provider Dropbox (DBX.O) saw its stock price drop 2% to $33.95 before the market opened on Monday as the company seeks financing

** DBX is privately issuing $1.0 billion in convertible notes (link), which will mature in 2031

** The company plans to use the net proceeds from this offering, together with cash on hand, to repay at least $750 million in borrowings under its credit facility

** The company also intends to use part of the funds raised to pay the costs of hedge transactions and to repurchase approximately $175 million of its own shares from convertible note investors

** Headquartered in San Francisco, DBX has a market capitalization of about $7.5 billion

** On Thursday evening, the company released (link) its third quarter financial results, which beat expectations, and announced it would acquire (link) the AI-focused storage platform Tigris Data for about $350 million in cash

** As of Friday's close, the stock had gained about 25% year to date, outperforming the Nasdaq Composite Index (.IXIC) which rose about 11%

** According to data from London Stock Exchange Group (LSEG), the average rating from 10 analysts was "hold", with a median target price of $33

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