Affirm Holdings, Inc. (AFRM) has announced the pricing of an upsized private offering of $1.5 billion 0% convertible senior unsecured notes due 2026, which reflects an increase of $250 million from the previous offering size. The notes will mature on November 15, 2026.
The company offers a platform for digital and mobile-first commerce. It comprises a point-of-sale payment solution for consumers, merchant commerce solutions and a consumer-focused app. (See Affirm stock chart on TipRanks)
The initial purchasers have an option to purchase up to an additional $225 million aggregate principal amount of notes within a period of 13 days from, and including, the date notes are first issued. The sale to initial purchasers is expected to settle on November 23, 2021.
The net proceeds from the offering is expected to be about $1.48 billion. The company intends to use the net proceeds for general corporate purposes and fund its plans for future growth.
Mizuho Securities analyst Dan Dolev maintained a Buy rating on the stock and raised the price target to $180 (upside potential of 32.2%) from $170.
The rest of the Street is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 7 Buys, 4 Holds and 1 Sell. The average Affirm price target of $170.09 implies 24.9% upside potential.
According to the tool, in October, the Affirm website recorded a 44.2% monthly increase in global unique visits, compared to the previous year. Further, year-to-date website traffic growth has climbed 51% against the same period last year.