In a Wednesday interview with CNBC's Jim Cramer, SoFi CEO Anthony Noto explained why the online personal finance company issued a convertible debt offering.
"We did this deal from a position of strength," Noto said. "What we saw was an opportunity, from that position of strength, to lower our cost of debt."CEO Anthony Noto explained why the online personal finance company issued a convertible debt offering, saying it was a way to lower debt costs. "We did this deal from a position of strength," Noto said. "What we saw was an opportunity, from that position of strength, to lower our cost of debt."in early March it planned to raise $750 million by issuing convertible senior notes. In the same announcement, SoFi also said it entered into agreements with certain holders of existing convertible notes to exchange them for shares.The company reached GAAP profitability for the first time during the fourth quarter of 2023.
"We saw it as an opportunity to do it and have a negligible impact on GAAP earnings per share and also, combined with a buyback, have it be accretive to tangible book value per share by 8 to 10%," Noto said. "The reason why we did it is really important, because I think this is what will put some momentum back into the stock.
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