RightNow Technologies Sells $175M In Senior Notes

Jefferies & Company has published a research report on RightNow Technologies RNOW and is updating its model after the company sold $175M in Convertible Senior Notes due in 2030. In the report, Jefferies writes "We view the capital raise as a signal for more acquisitions and note we have seen other SaaS players (CRM, Hold, $130PT) and CNQR (CNQR, Buy, $58PT)) issue convertible debt this year. At the time the transaction was announced, RNOW's convert was approx. 20% of its market cap, which compares with CRM at 6% and CNQR at 12%. In addition, RNOW's debt carries an annual coupon of 2.5%, which is in-line with CNQR (CNQR's debt matures in 2015, while RNOW's matures in 2030) but higher than CRM at 0.75%." Jefferies maintains its Hold rating and raises the price target from $23 to $25. RightNow Technologies closed Friday at $23.06.