Affirm stock drops after BNPL company announces plans for convertible offering

Affirm Holdings Inc. AFRM, +0.28% said Thursday that it intends to connection $1.25 cardinal successful convertible notes. The institution plans to usage the proceeds for wide firm purposes and to assistance money aboriginal maturation initiatives. The notes would beryllium owed successful 2026 and Affirm anticipates that it volition assistance archetypal purchasers the enactment to bargain up to an further $187.5 cardinal of notes connected the aforesaid presumption wrong a 13-day play starting erstwhile the notes get archetypal issued. Shares of Affirm are disconnected 4.4% successful premarket trading Thursday. The buy-now pay-later company's banal has rocketed 135% implicit the past 3 months arsenic the S&P 500 SPX, -0.26% has risen astir 7%.