Robinhood Markets is weighing the sale of between $400 million and $500 million of asset-backed securities, including a bond backed by bills for its branded consumer credit cards, Bloomberg reported Monday (July 13), citing unnamed sources.
The company is currently gauging investor interest in the bond, which would be its first such offering, according to the report.
Robinhood did not immediately reply to PYMNTS’ request for comment.
According to the Bloomberg report, Capital One Financial sold $3.85 billion in bonds backed by card receivables last week.
Robinhood announced June 25 that it closed an offering of $2.2 billion of 0.00% convertible senior notes due 2029.
The company said at the time in a press release that the transaction enhanced its “strategic flexibility to invest for future growth” and that it would use about $290 million of the proceeds to repurchase outstanding Class A common stock.
PYMNTS reported in April that Robinhood’s first quarter earnings reflected the company’s deliberate pivot from a trading app tied to retail speculation toward an integrated financial platform built to capture long-term customer value.
“Driven by our relentless product velocity and innovation, Robinhood is increasingly positioned at the center of our customers’ financial lives, just as we enter the early innings of the Great Wealth Transfer,” Robinhood Chairman and CEO Vlad Tenev said during the earnings call.
Robinhood’s March 2024 launch of a credit card marked the continuing expansion of the company into financial services at that time.
The company said at the time that it recognized the need for change and that it sought to reimagine the credit card experience with the launch of the Robinhood Gold Card.
PYMNTS reported at the time that while Robinhood made a name for itself as a stock trading and investment app, it had begun to broaden its horizons.
Robinhood announced in March that it introduced a high-end credit card with a $695 annual fee and luxury perks as part of a suite of new products centered on family finance.
In May, the company launched Agentic Trading and the Agentic Credit Card, which allows artificial intelligence agents to make trades and credit card purchases on a customer’s behalf.
New York City’s new development market continues to be a tale of two markets. Contracts signed for new condos in Manhattan asking $10 million or more nearly doubled in the second quarter from the same time last year to 38 from 21, marking the second consecutive period where the high-end market made up half of…
The Real Deal, the biggest news organization covering real estate in the U.S., today announced the official launch of TRD Policy Pro, a newsroom-powered intelligence platform and searchable database designed to help real estate professionals understand, track and respond to the government decisions that shape the market. Following a successful soft launch earlier this year,…
An EasyJet Airbus A320 aircraft is seen at Malpensa Airport near Milan, Italy, October 3, 2018. Stefano Rellandini | Reuters EasyJet said Friday it is considering a $7.7 billion takeover bid from Apollo Global Management. Under the terms of the cash offer, easyJet shareholders would be entitled to £7.15 ($9.61) per share of the company,…
Office-to-residential conversions haven’t fallen out of favor with the mayor. Buckling columns at the former Pfizer headquarters in Midtown weren’t enough to deter the mayor’s pursuit of office-to-residential conversions as part of his broader housing plan for 200,000 units over the next decade. The risky situation at 235 East 42nd Street on Tuesday was partially…
The act defines “mortgage” broadly, covering deeds of trust, trust deeds, security deeds, indentures, and deeds to secure debt. The protection is bounded, though. It applies to a listed set of changes: extending the maturity date, cutting the interest rate, changing the rate structure or index in specified ways that don’t raise the rate, capitalizing…
“My house shook violently from the wind.”