Bruker prices $600 million convertible preferred stock offering

BILLERICA, Mass. - Scientific instrument maker Bruker Corporation (NASDAQ:BRKR), currently trading near its 52-week low at $29.35, announced Wednesday the pricing of its public offering of $600 million of 6.375% Mandatory Convertible Preferred Stock. The company, which has seen its shares decline over 12% in the past week according to InvestingPro data, has granted underwriters a 30-day option to purchase up to an additional $90 million of the preferred stock.

The offering, expected to close around September 8, consists of 2.4 million shares with a liquidation preference of $250 per share. Each share will automatically convert into Bruker common stock on September 1, 2028, based on the company’s stock price at that time, with conversion rates between 6.9534 and 8.5179 shares of common stock per preferred share.

Bruker anticipates net proceeds of approximately $582 million from the offering, or $669.5 million if underwriters exercise their full option. The company plans to use the proceeds to strengthen its balance sheet by repaying its term loan due December 2026, outstanding borrowings under its revolving credit agreement, and a portion of its term loan due March 2027. With current total debt of $2.48 billion and a Financial Health score rated as "Fair" by InvestingPro, this debt reduction initiative comes at a crucial time for the $4.46 billion market cap company.

Dividends will be payable quarterly at an annual rate of 6.375% on the liquidation preference, with the first payment scheduled for December 1, 2025.

J.P. Morgan and BofA Securities are serving as joint book-running managers for the offering, with PNC Capital Markets LLC acting as co-manager. Bruker has applied to list the preferred stock on the Nasdaq Global Select Market under the symbol "BRKRP."

The offering is being made through an effective shelf registration statement filed with the Securities and Exchange Commission, according to the company’s press release statement. Despite recent stock performance challenges, Bruker maintains solid revenue growth of over 10% in the last twelve months. For deeper insights into Bruker’s financial health, valuation metrics, and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks with expert analysis and actionable intelligence.

In other recent news, Bruker Corporation has announced a public offering of $600 million in Mandatory Convertible Preferred Stock, Series A. The proceeds from this offering are intended to strengthen the company’s balance sheet by repaying debt, including term loans due in December 2026 and March 2027, as well as outstanding borrowings under its 2024 amended revolving credit agreement. Additionally, Bruker’s Board of Directors has approved a quarterly cash dividend of $0.05 per share, set to be paid in early October 2025.

Meanwhile, analysts have adjusted their outlook on Bruker, with TD Cowen lowering its price target to $40 from $47, maintaining a Hold rating, following a reduction in the company’s 2025 guidance due to weak demand. Similarly, Stifel has also reduced its price target to $40 from $48, citing weak academic spending and a second-quarter earnings miss as factors impacting the company’s performance. These developments reflect the current challenges Bruker is facing in the market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.