Mentioned:
Opendoor is doing something new: buying back their own stock.
What’s happening:
- Opendoor (NASDAQ: OPEN) has priced a $650M USD financing of convertible senior notes
By the numbers:
- The $650M USD of convertible senior notes being raised by Opendoor will pay a 0% coupon
Why it matters:
- Opendoor has publicly stated they have committed to buying back 5% of their total outstanding shares at a price of $3.49 USD per share
Going deeper:
- Opendoor is planning to use the new growth capital to fund the purchases of more home inventory
- Opendoor’s Chief Executive Officer Kaz Nejatian has also publicly stated he will be personally buying more Opendoor shares in the open market after the convertible senior notes financing is closed
The intrigue:
- This is the first time ever that Opendoor has committed to buying back their own stock
