Wayfair, the once high-flying online furniture retailer, raised US$535m last weekend from the sale of five-year convertible bonds to a trio of investors. Wayfair shares soared 41.2% to US$71.50 Monday after it disclosed the financing alongside a business update. By the close of Wednesday trading, they finished at US$77.77. The new privately placed CB issue, by comparison, carries a 2.5% coupon and is convertible at US$72.50, arguably making this one of the most lopsided trades ever in favour of investors.
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