Vroom drops on proposed $500 Million senior note sale

Vroom drops on proposed $500 Million senior note sale
Shares of Vroom (VRM) dropped after the online car dealership unveiled plans to sell $500 million of convertible senior notes due 2026 to institutional buyers.

The New York company also will give the initial purchasers an option to buy another $75 million (U.S.) of notes.

The notes are convertible or can be redeemed in full or in part for cash at Vroom’s option on or after July 6, 2024.

Vroom will use the funds for general purposes, including advertising and marketing, expansion of its logistics operations and increased resources for its customer experience team.

At last check Vroom shares were off 5.7 per cent to $42.61.

Last month, Vroom shares rose after its first-quarter report received positive reviews from analysts and prompted some price-target upgrades.

Vroom’s first-quarter net loss widened to $77.2 million, or 57 cents a share, from $41.1 million, or $4.85 a share, in the year-earlier quarter. Shares outstanding jumped to 135.5 million from 8.5 million.

The FactSet-derived analyst consensus called for a loss of 63 cents in the latest quarter.

Revenue jumped 57 per cent to $591.1 million, ahead of the FactSet consensus estimate of $517.2 million. Consumer demand for cars — and online shopping generally — has surged during the pandemic.
Read more on Toronto Star
News Topics :
Shares of Papa John’s International PZZA rose sharply Thursday after the fast food chain announced earnings that beat expectations for the first quarter. Revenue soared 25 per cent in the quarter...
Vroom , an on demand car buying and selling startup that has raised over $300 million in venture funding, has hit a bump in the road. TechCrunch has learned and confirmed...
RICHFIELD, MINN.—Best Buy’s profit jumped 21 per cent as the electronic retailer revved up online revenue during the second quarter at the same time that it cut costs. Shares soared...
MONTREAL Air Canada has increased the size of a financing deal announced earlier this week to roughly $1.4 billion as it works to bolster its coffers to deal with...
Shares of Ralph Lauren RL fell sharply after the apparel and home products company reported fourth quarter results that missed estimates. The fashion house also reinstated the quarterly dividend at 68.75 cents...