Robinhood explores first credit card-backed bond sale - report

Investing.com -- Robinhood Markets Inc. is measuring investor interest in a bond backed by bills from its branded consumer credit cards, marking what would be the company's first such offering, according to a Bloomberg report Monday.

The firm is seeking to sell at least $400 million of asset-backed securities split into four parts. The highest-rated portion of the deal carries initial price talk at a premium of approximately 0.8 percentage point over the benchmark.

The fundraising move arrives as Robinhood expands deeper into the credit card sector, moving beyond the retail brokerage platform for which it is primarily known. In March, the company announced it was offering a $695 credit card plated with real platinum designed to compete with American Express Co., two years after launching its no-fee Gold Card.

The debt sale, which could reach $500 million, is being managed by Wells Fargo & Co. and Barclays Plc. Coastal Community Bank owns the company's branded credit card accounts, according to a Fitch Ratings note to clients.

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