BUZZ - Delek US stock falls after announcing a $400 million convertible bond issuance plan

September 24 - ** Oil refiner Delek US Holdings (DK.N) shares fell 8.3% to $66.25 before Thursday's market open as the company seeks financing

** DK announced (link) a private placement offering of $400 million in convertible bonds (CBs), maturing on November 1, 2031

** The company plans to use the net proceeds for general corporate purposes, including partial repayment of term loans

** The company also plans to use part of the proceeds to pay for “capped calls”, a type of derivative transaction used to offset potential dilution

** DK, headquartered in Brentwood, Tennessee, has a market capitalization of about $4.4 billion

** Although DK shares have fallen for four consecutive trading days, as of Wednesday, their year-to-date gain was still around 144%. During Friday trading, shares hit an all-time high of $82.27

** According to London Stock Exchange Group (LSEG) data, among 13 analysts, 7 rate the stock as “strong buy” or “buy”, 5 as “hold”, and 1 as “sell”; the median price target is $72, higher than $62 a month ago and $50 on June 24

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