Why Wayfair Stock Is Tumbling After The Close

Wayfair Inc W shares are trading lower in Monday's after-hours session after the company announced an offering to raise capital via debt. 

What Happened: Wayfair said it intends to offer $600 million worth of convertible senior notes due 2028 in a private offering to institutional buyers. 

The final terms of the notes will be determined at the time of pricing, which is expected to be based on the closing price of the stock on Tuesday.

In connection with the note offering, Wayfair expects to enter into privately negotiated capped call transactions with one or more of the initial purchasers. The company intends to use a portion of the net proceeds from the offering to pay the cost of the capped call transactions.

Proceeds will also be used to repurchase for cash a portion of the 2024 Notes, 2025 Notes and 2026 Notes. Any remaining net proceeds will be used for working capital and general corporate purposes.

See Also: Devon Energy Reports Mixed Q1 Results, Increases Buyback: The Details

W Price Action: Wayfair shares were down 7.81% at $36.85 at the time of publication, according to Benzinga Pro.

Photo: u_jup1hbno from Pixabay.