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March 30, 2020, 9:58 a.m. EDT

Redfin's stock falls after equity investment by Durable Capital at a discount

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By Tomi Kilgore

Shares of Redfin Corp. /zigman2/quotes/203726414/composite RDFN -7.14% slumped 5% in morning trading Monday, after the real estate brokerage services company announced a $110 million equity investment by Durable Capital Partners L.P. at a discount. The investment includes selling $70 million worth of common stock at $15.61, or 3% below Friday's closing price of $16.09, and $40 million worth of convertible preferred stock that pays an annual dividend of 5.5%. The stock has lost 43.5% over the past month, while the S&P 500 /zigman2/quotes/210599714/realtime SPX -1.12% declined 13.4%. "Durable's Henry Ellenbogen has been leading investments in Redfin since 2013, when we were a private company and the market was recovering from the great financial crisis," said Redfin Chief Executive Glenn Kelman. "In chaotic times, he understands our long-term commitments to our culture and our technology, and why those commitments position us to take share in a housing market that is being transformed by this pandemic to be more virtual, convenient and efficient."

US : U.S.: Nasdaq
$ 45.92
-3.53 -7.14%
Volume: 2.77M
Sept. 18, 2020 4:00p
P/E Ratio
Dividend Yield
Market Cap
$4.92 billion
Rev. per Employee
-37.54 -1.12%
Volume: 4.09B
Sept. 18, 2020 5:15p

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