Upstart drops after convertible debt deal announced

Upstart Holdings

12/11/2024 12:48

** Shares of Upstart  UPST.O  off 4.8% before the bell to $73.74
as AI-driven lending platform seeks another capital raise by
issuing convertible securities
** Co says  $425 mln 6-yr convertible bonds (CBs)
    ** It plans to use net proceeds for general purposes,
including to pay down debt
** UPST shares on Fri soared 46% to close at $81, a day after co
forecasted Q4 rev above Street expectations, with analysts
citing improving loan and credit performance
    ** Through Mon close, stock up 90% in 2024 giving it ~$7.1
bln market cap, per LSEG
** In Sept, co priced offering of $375 mln 5-yr CBs to
repurchase portion of it CBs due 2026

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