- The stock price of Offerpad Solutions Inc (NYSE: OPAD) increased by over 58% during intraday trading. This is why it happened.
The stock price of Offerpad Solutions Inc (NYSE: OPAD) increased by over 58% during intraday trading. There are a couple of reasons why the stock price increased.
Investors are responding positively to Offerpad Solutions disclosing in a regulatory filing that its wholly-owned subsidiary Offerpad SPE entered into a loan and security agreement earlier this month.
The credit agreement initially provides for a $300 million credit facility available over a 24-month term with an accordion feature providing for additional capacity of $100 million, entered into with J.P. Morgan Chase Bank, N.A. and the other Class A Lenders and a mezzanine facility of $37.5 million with an accordion feature providing for additional capacity of $12.5 million, entered into with LL Private Funding Lending II, L.P. and the other Class B Lenders. The borrowings accrue interest at a rate equal to one-month LIBOR plus 2.5% per annum for the credit facility. And the borrowings accrue interest at a rate equal to 13% per annum for the mezzanine facility.
The surge in the stock price is also being driven by investors who are active on social media. On several stock trading forums, OPAD is cited as being a short squeeze candidate.
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.