Here's Why Evolent Health Dropped 10% on Friday

Brian Orelli, PhD, The Motley Fool
·2-min read
Here's Why Evolent Health Dropped 10% on Friday

Shares of Evolent Health (NYSE: EVH) closed down 10% on Friday after the healthcare company refinanced some convertible senior notes, which were due to be paid next year. Evolent Health is exchanging $84.2 million in convertible senior notes due in 2021, on which it was paying a 2% interest rate, for $84.2 million in convertible senior notes due in 2024, on which it'll have to pay an interest rate of 3.5%. Evolent Health also has to pay $2.5 million in cash to make the exchange happen.