OPAD - Why Is Offerpad Stock Soaring Today?
The stock market continued its September slump on Thursday with all three major indexes firmly in the red as of 11 a.m. EDT. But real estate disruptor Offerpad (NYSE: OPAD) is refusing to participate in any market weakness. Shares are up by 37% today alone and have now gained more than 64% in the last five trading sessions.
There are a couple of potential explanations for today's move. First and foremost, Offerpad revealed a new credit line led by JPMorgan Chase (NYSE: JPM) in a Securities and Exchange Commission filing Wednesday evening. The new credit facility consists of a $300 million base line and a $100 million accordion feature, and a smaller mezzanine facility as well. Offerpad's business of buying and flipping houses is very capital intensive, so even though the company received $284 million in cash as part of its recent IPO via a special purpose acquisition company, this new capital access is welcome news.
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Why Is Offerpad Stock Soaring Today?