SOFI - SoFi: Equity Dilution Risks

2024-03-06 03:01:45 ET

Summary

• SoFi Technologies is offering $750 million in Convertible Senior Notes with a 1.25% interest rate and a conversion price of $9.45.
• It also issued ~61m of shares to redeem its 2016 Convertible Notes.
• SOFI is shoring up its capital position, but it comes with a cost.
• The light at the end of the tunnel for investors is strong potential performance by the Tech division.

On March 5, 2024, SoFi Technologies ( SOFI ) announced to the market a $750 million Convertible Senior Notes Offering (due 2029). The notes will pay interest at a rate of 1.25% and the conversion price is set at $9.45 (30% above SOFI closing price of $7.27)....

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