FireEye blazes toward future thanks to US$800m convertible

摘要

Fireeye's fundraising could hardly have been better timed, with the cyber security company tapping investors just as news broke that 100,000 US taxpayers' records had been illegally accessed. Adding the Internal Revenue Service to the list of recent hacking victims of JP Morgan, Target and Anthem helped underline the investment case for the convertible bond. Yet FireEye remains a polarising stock due to its fast growth but continually distant prospect of profitability, ensuring this was a trade structured to appeal to hedge funds. The inclusion of a share repurchase, to occur in the future, helped facilitate hedging for technical buyers, allowing for a larger CB.