Why Are Porch Shares Trading Lower Today?

Vertical software platforms and services provider Porch Group Inc PRCH has proposed to offer $350 million convertible senior notes due 2026 through a private institutional offering.
The underwriters would have a 30-day option to acquire additional notes up to $52.5 million.
The notes would accrue interest semiannually on March 15 and September 15 of each year, beginning on March 15, 2022.
Porch would forge privately negotiated capped call transactions with one or more initial purchasers to reduce the potential dilution to the stock on the note conversion.
Porch would use a portion of the offering proceeds to pay the cost of capped call transactions and the remainder to repay borrowings and general corporate purposes.
Porch held $43.8 million in long-term debt as of June 30.
Price Action: PRCH shares traded lower by 15.5% at $18.79 on the last check Monday.