Opendoor Technologies falls after $650 mln convertible debt sale

Opendoor Technologies

13/08/2026 12:52

** Shares of online residential real estate firm Opendoor Technologies OPEN.O down 8% at $3.21 before the bell on Thurs after capital raise news
** Tempe, Arizona-based OPEN announces it sold privately to certain investors $650 mln 0% convertible bonds due Aug 15, 2030
** Conversion price of $4.71 represents 35% premium over stock's last sale of $3.49 on Weds
** Co intends to use about $52.5 mln of net proceeds to fund cost of capped call transactions to reduce any potential dilution and approx $158 mln to repurchase approx 45.3 mln of its shares; remainder to expand its home inventory and market footprint
** Co says above cap price of $6.98, the shares repurchased are expected to offset net share issuance until stock price exceeds $10.38
** In addition, J. Wood Capital Advisors, the placement agent for the transactions, intends to purchase $25 mln worth of OPEN's shares
** With ~971.1 mln shares outstanding, co has roughly $3 bln market cap
** On Aug 4, OPEN reported Q2 rev rose 23% from Q1 to $883 mln, missing analysts' estimate, and said expects positive adjusted net income on a 12-month go-forward basis by end of 2026
** At Weds close, OPEN stock down 40% YTD
** Avg rating of 10 analysts is "hold"; median PT $4.38
     

(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))