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Why iRobot Stock Fell 11.6% Last Month

TheMotleyFool 
0 0 07.08.23
Why iRobot Stock Fell 11.6% Last MonthPhoto, wide shot, wide-angle lens, Computer hardware manufacturer, sunset photo at golden hour, photo by Art Wolfe: https://img.midjourneyapi.xyz/temp/8b396c5d-cf01-4937-89c4-91ad2f28f1ee.png
 

Shares of (NASDAQ: IRBT) fell 11.6% in July, according to data from S&P Global Market Intelligence. Amazon (NASDAQ: AMZN) is trying to acquire the maker of Roomba robotic vacuum cleaners and other household robots. Nearly one year after the original merger announcement, the parties modified the deal's terms in order to reflect changes to iRobot's business value.

The rewritten acquisition papers lowered the buyout price from $61 to $51.75 per share. The same day, iRobot opened a $200 million financing facility in the form of a senior secured term loan from Carlyle Group. Amazon expects the lower buyout price to balance out iRobot's increased debt.

In a news release, CEO Colin Angle said: "iRobot is taking on new financing that we believe is sufficient to support our operations in a hyper competitive environment and meet our liquidity needs as well as pay off iRobot's existing debt. This new financing is the outcome of a thorough process and represents the best terms reasonably obtainable on additional financing to support our operations."

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Source Fool.com

iRobot Corp. Stock

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