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?