SoFi Technologies, Inc. Announces Proposed Convertible Senior Notes Offering Due 2029
Portfolio Pulse from Benzinga Newsdesk
SoFi Technologies, Inc. (SOFI) plans to offer $750 million in convertible senior notes due 2029 to qualified institutional buyers, with an option for an additional $112.5 million. The notes are unsecured and can be converted into cash or SoFi stock. Proceeds will fund capped call transactions, redeem Series 1 Preferred Stock, and for general corporate purposes including repaying debt.
March 05, 2024 | 1:22 pm
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SoFi Technologies, Inc. announces a significant convertible senior notes offering, aiming to raise up to $862.5 million for corporate purposes including debt repayment.
The offering could lead to an increase in SoFi's stock price in the short term due to the potential for debt repayment and financial restructuring, which are generally viewed positively by the market. However, the impact of dilution from the conversion of notes to stock and the specifics of the capped call transactions need to be considered.
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