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Stock impact report

Why Xponential Fitness (XPOF) Stock Is Trading Up Today [Yahoo! Finance]

Xponential Fitness, Inc. Class A (XPOF) 
Company Research Source: Yahoo! Finance
Shares of boutique fitness studio franchisor Xponential Fitness (NYSE:XPOF) jumped 19% in the afternoon session after the company announced a significant debt refinancing and a plan to repurchase all of its convertible preferred stock, a move that prevents dilution for existing shareholders. Xponential Fitness entered into a new credit agreement for a $525 million five-year term loan and a $25 million revolving credit line. The company used the proceeds to refinance its existing debt and to buy back preferred stock that could have been converted into approximately 8.2 million common shares. This action was viewed positively by investors because it prevented the value of existing shares from being diluted. Additionally, the company's Chief Financial Officer noted that the refinancing could also lead to lower interest payments if certain financial milestones were achieved. Show less Read more
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