Upstart (UPST) Slashes 7.7% on $500-Million Fundraising Program

We recently published 10 Stocks Collapse Overnight. Upstart Holdings, Inc. (NASDAQ:UPST) is one of the best-performing stocks on Monday.

Upstart Holdings dropped its share prices for a second day on Monday, shedding 7.71 percent to close at $63.46 apiece as investors soured on its plans to raise $500 million from the issuance of convertible senior notes.

In a statement, Upstart Holdings, Inc. (NASDAQ:UPST) said that the notes will have a tenor of 7 years and will mature in 2032, unless earlier converted, repurchased, or redeemed.

It also granted the initial buyers an option to purchase up to $75 million within a 13-day period beginning on the date the notes are first issued.

The notes can be converted into cash or shares of its common stock, or they can prefer to convert into a combination of both.

According to Upstart Holdings, Inc. (NASDAQ:UPST), proceeds from the offer will be used to pay the cost of the offering, as well as repurchase for cash a portion of its outstanding 0.25 percent Convertible Senior Notes due 2026.

The balance will be allocated for general corporate purposes, which may include the repayment or retirement of existing debt, including the repurchase or retirement of the 2026 Notes.

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