Why Groupon Stock Sagged 10% at the Open Today
Shares of Groupon (NASDAQ: GRPN) fell roughly 10% as Wall Street trading got under way on March 22. The drop was most likely related to a financing transaction, which investors obviously viewed in a less than positive light even though there are some positives here.
Before the market opened, Groupon, which describes itself as an "experiences retailer," announced it was issuing $200 million worth of convertible senior notes due 2026 in a private placement to institutional investors. Those investors can increase that by another $30 million if they'd like. The proceeds are expected to be used to pay down debt that comes due in 2022.
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Source Fool.com
