Affirm Holdings Inc (NASDAQ:AFRM) shares are trading lower in Monday's after-hours session after the Buy Now, Pay Later company announced a proposed private offering.

What Happened: After the market close on Monday, Affirm announced plans to offer $750 million worth of convertible senior notes due 2029 in a private offering to institutional buyers. The company will also grant the initial purchasers a 13-day option to buy up to an additional $112.5 million of the notes.

Affirm plans to use the net proceeds to repurchase some of its 0% convertible senior notes due 2026. In addition, the company will use a portion of the net proceeds combined with cash on hand to repurchase up to $300 million of its common stock at a price equal to Affirm's closing price on the date of the pricing of the notes.

The offering comes just days after Affirm announced a long-term capital partnership with investment firm Sixth Street in which it will invest up to $4 billion through the purchase of Affirm loans. The transaction provides additional off-balance sheet funding with the ability for Affirm to extend up to more than $20 billion in loans over the next three years.

As of the end of September, Affirm had $2.1 billion in total liquidity split between cash and securities available for sale. The company also had $1.2 billion remaining in convertible debt, down from $1.3 billion at the end of the prior quarter.

AFRM Price Action: Affirm shares were down 2.28% in after-hours, trading at $71.20 at the time of publication, according to Benzinga Pro.

• Trump Says SoftBank's $100B Commitment To US Is 'Monumental Demonstration Of Confidence In America's Future'

Photo: Courtesy of Affirm.