Why Pagaya Technologies (PGY) Stock Is Trading Lower
Portfolio Pulse from Henry Khederian
Pagaya Technologies (NASDAQ:PGY) shares dropped 21.9% after announcing a $125 million private offering of exchangeable senior notes due 2029. The notes are exchangeable into cash or Class A shares under certain conditions and are not redeemable until 2027. The stock has seen a significant decline over the past year.
September 26, 2024 | 2:51 pm
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Pagaya Technologies' stock fell 21.9% following the announcement of a $125 million private offering of exchangeable senior notes due 2029. This move may dilute existing shares and indicates potential financial strategy shifts.
The announcement of a $125 million private offering of exchangeable senior notes suggests potential dilution of existing shares, which often leads to a decrease in stock price. The significant drop of 21.9% reflects investor concerns about this financial strategy and its impact on shareholder value.
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