Overstock.com

(OSTK) - Get Report

outlined plans Monday to tap financial markets for around $130 million of new capital, taking advantage of its soaring stock price.

In a

Securities and Exchange Commission

filing, the company said it will sell 1 million new shares and raise an additional $75 million through a placement of senior convertible notes in the 144a market. The stock closed at $60.20 Friday, roughly double its level of early September.

Overstock said it will have about 19.3 million shares outstanding after the stock sale. Proceeds will be used for general corporate purposes, including sales and marketing activities and inventory purchases.

The stock fell $3.18, or 5.3%, to $57.02 on Instinet following news of the filing.