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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 +2.70% 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 -0.34% 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."

/zigman2/quotes/203726414/composite
US : U.S.: Nasdaq
$ 33.45
+0.88 +2.70%
Volume: 1.67M
June 4, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$3.06 billion
Rev. per Employee
$162,686
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/zigman2/quotes/210599714/realtime
US : S&P US
3,112.35
-10.52 -0.34%
Volume: 3.74B
June 4, 2020 5:10p
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