SoFi Technologies Enhances Capital Structure and Finances

SoFi Technologies Enhances Capital Structure and Finances

SoFi Technologies (SOFI) just unveiled an update.

SoFi Technologies, Inc. has completed significant financial maneuvers by exchanging $600 million of its 0% Convertible Senior Notes due in 2026 for company stock and issuing 1.25% convertible notes due in 2029. These strategic exchanges are set to bolster the company’s total risk-based capital ratio by over 200 basis points, improve its GAAP net income for the first quarter of 2024, and enhance tangible book value by 8-10%. Additionally, SoFi anticipates saving $40 to $60 million annually in interest and dividends by using the new notes proceeds to pay down more expensive debt, including high-cost redeemable preferred stock.

For an in-depth examination of SOFI stock, go to TipRanks’ Stock Analysis page.

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