Why SoFi Technologies Stock Got Slammed Today
SoFi Technologies (NASDAQ: SOFI) investors had a fabulous February as shares of the fintech stock gained nearly 15% after its fourth-quarter earnings report showed SoFi turned profitable faster than expected.
SoFi stock is giving back all those gains today, though -- and more. As of 11:20 a.m. ET, the stock is down 11.5% on news that SoFi is cashing in on its stock market gains and taking on $750 million in new debt.
SoFi announced this morning that it intends to place $750 million worth of convertible senior notes due in 2029 with unnamed private investors and to offer an overallotment option that could raise the debt offering's total value to $862.5 million. The company did not state what interest rate it would pay on this debt. Still, it's curious that -- with much of the stock market convinced that interest rates are about to come down in a big way later this year -- SoFi felt compelled to do this particular debt offering right now and not wait for better rates.
Source Fool.com
