By Chris Wack


SoFi Technologies shares were down 10% at $7.74 after the company said it plans to offer $750 million of convertible senior notes due 2029 in a private offering.

The company also intends to grant the initial purchasers of the notes an option to purchase, for settlement within a period of 13 days from, and including, the date the notes are first issued, up to an additional $112.5 million of notes.

The notes will be unsecured, unsubordinated obligations of SoFi, will accrue interest payable semi-annually in arrears, and will mature on March 15, 2029, unless earlier repurchased, redeemed or converted. Note holders will have the right to convert their notes in certain circumstances into cash and, if applicable, shares of SoFi's common stock.

The notes will also be redeemable, in whole or in part, for cash at SoFi's option at any time, and from time to time, on or after March 15, 2027, and on or before the 30th scheduled trading day immediately before the maturity date. The interest rate, initial conversion rate and other terms of the notes will be determined at the pricing.

SoFi intends to use a portion of the proceeds from the offering to fund the cost of entering into capped call transactions. The company intends to use the remainder of the net proceeds, together with cash on hand to pay fees, costs and expenses relating to this offering and related transactions, to redeem its 12.5% Series 1 Preferred Stock andSoFi for general corporate purposes, which may include repayment of higher cost indebtedness.


Write to Chris Wack at chris.wack@wsj.com


(END) Dow Jones Newswires

03-05-24 1048ET