Summary by Futu AI
On March 5, 2024, SoFi Technologies, Inc. announced its plans to offer $750 million of convertible senior notes due in 2029, with an additional option for purchasers to acquire up to $112.5 million more in notes. This private offering is targeted at qualified institutional buyers. The company also disclosed the completion of privately negotiated transactions to exchange $600 million of its 0% Convertible Senior Notes due 2026 for approximately 61.7 million shares of common stock. The transactions are expected to increase SoFi's total risk-based capital ratio by over 200 basis points, from 15.3% to over 17.3%, and are anticipated to be accretive to GAAP net income and tangible book value for Q1 2024. SoFi also plans to enter into capped call transactions to minimize dilution from the note conversions. The proceeds from the offering are intended for general corporate purposes, including redeeming 12.5% Series 1 Preferred Stock and repaying higher cost debt. The company has advised that the offering and the capped call transactions may affect the market price of SoFi's common stock and the notes.