Vroom skids ahead of $500 mln convertible offering

Vroom

15/06/2021 15:47

** Vroom Inc  VRM.O  shares down 11.2% to near 1-mth low
$40.11 as online used-car seller looks to price convertible
offering Tues after market close
    ** VRM on course for biggest one-day pct loss since Mar 4,
when stock tanked ~28% in wake of co's bigger-than-expected Q4
loss
    ** Vroom after the bell Mon said it's offering privately
$500 mln 5-yr convertible notes  urn:newsml:reuters.com:*:nGNX8g21RW
    ** Co plans to use net proceeds for general corp purposes,
including marketing, logistics operations expansion, and
potential acquisitions among other uses
    ** VRM has ~$6.2 bln market cap based on Mon last sale, per
Refinitiv data
    ** With move on Tues, shares swing into negative territory
by ~2% YTD
    ** Stock >80% above Jun 2020 IPO price ($22), but has
roughly halved from record peak hit in early Sept
    ** Avg rating among 14 analysts on VRM is "buy" and median
PT is $55 - Refinitiv data

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper.tr.com@reuters.net
lance.tupper@tr.com 1-332-219-1430))