Why Repay Holdings (RPAY) Shares Are Trading Lower
Portfolio Pulse from Henry Khederian
Repay Holdings Corp (NASDAQ:RPAY) shares dropped by 11.9% to $9.00 after announcing a $260 million convertible notes offering due 2029. The proceeds will fund capped call transactions, repurchase 2026 convertible notes and Class A common stock, and for general corporate purposes.
July 03, 2024 | 12:48 pm
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Repay Holdings Corp (NASDAQ:RPAY) shares fell by 11.9% to $9.00 after the company announced a $260 million convertible notes offering due 2029. The proceeds will be used for capped call transactions, repurchasing 2026 convertible notes and Class A common stock, and general corporate purposes.
The announcement of a convertible notes offering often leads to a dilution of existing shares, which can negatively impact the stock price in the short term. The significant drop of 11.9% reflects investor concerns about dilution and the company's financial strategy.
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