Affirm ticks lower after upsized $800 mln convertible offering

Sixth Street Specialty Lending

18/12/2024 12:21

** Shares of Affirm  AFRM.O  down 0.3% at $70.70 on thin volume
before the bell as buy now, pay later co secures more capital
than targeted
** San Francisco-based firm late Tues announced pricing offering
of $800 mln 0.75% 5-yr convertible bonds (CBs)
    ** Offering size increased from $750 mln; initial conversion
price of $101.02 represents 42.5% premium to stock's last close
    ** Affirm plans to use net proceeds along with cash to
repurchase approx $960 mln principal of its 0% CBs due 2026 for
$892.8 mln
    ** It also expects to buy back ~3.5 mln shares of common
stock for ~$250 mln concurrently with offering
** Affirm last Fri announced partnership with Sixth Street
 TSLX.N  whereby the investment firm agreed to invest up to $4
bln by purchasing Affirm's loans over three years
** Last month, Affirm posted narrower net loss on 41% yr/yr jump
in rev as its active customers count climbed 15% to 19.5 mln
    ** Through Tues close, AFRM shares have risen ~74% QTD,
putting them up 44% YTD
    ** Co has current market cap of ~$22.3 bln, per LSEG

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