Compass jumps after announcing convertible for Anywhere Real Estate merger, encouraging Q4 guidance

Shares of home brokerage firm Compass COMP.N jump 8% early Weds to $11.70, highest since Nov 2021, a s it seeks capital to fund acquisition of Anywhere Real Estate HOUS.N

New York City-based COMP on Weds announced private offering of $750 mln convertible bonds due 2031

COMP intends to use net offering proceeds for general purposes, including the previously announced merger with HOUS, the repayment of certain existing indebtedness of HOUS and its subsidiaries at closing of the merger, and borrowings under its rival's credit facility

COMP also plans to use a portion of proceeds to pay cost of capped calls, derivative transactions employed to help mitigate potential dilution

Co said it expects Q4 rev to be at the high end of previously forecasted guidance of $1.59-$1.69 bln and adj EBITDA to be at or slightly above the high end of prior guidance of $35-$49 mln

Additionally, COMP said it added 800 principal agents in the qtr

COMP shares, which have about $6 bln market cap, rose 81% in 2025

HOUS shares also jumping 15.1% to $16.63 on the session