** Shares of software firm Cloudflare NET.N down 1.7% premarket to $167.92 after it raises capital
** San Francisco-based co early Fri announces pricing $1.75 bln 0% 5-yr convertible notes offering
** Initial conversion price of $247.67 is 45% above stock's last close. NET shares on Weds fell 5% to $170.81
** Co, which offers services to improve website and application security and performance, says plans to use net offering proceeds for general purposes, including working capital, capex, debt repayment, potential acquisitions
** Co also intends to use ~$248 mln of proceeds to pay for capped calls, derivative transactions to mitigate shareholder dilution
** Cap price initially is $469.73, which represents 175% premium to last sale
** Co has ~$59 bln market cap, per LSEG data
** Through Thurs, stock up ~59% YTD
** Of 35 analysts covering NET, 21 rate stock "strong buy" or "buy", 12 rate "hold" and 2 rate "sell" or "strong sell"; median PT is $151, according to latest LSEG data
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))
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