Twitter Inc To Sell $1.3 Billion In Convertible Notes

Twitter Inc TWTR will raise $1.3 billion in a private placement of convertible senior notes that it can choose to convert into common shares, the company said Wednesday.

The San Francisco social media company said that at its choice, the notes can also be converted to cash, or a combination of cash and stock.

In the extended session Wednesday, Twitter fell nearly two percent, changing hands at $52 a share.

Twitter will offer initial purchasers a 30-day option to acquire an additional $200 million of the notes to cover over-allotments. The notes will be sold in two separate tranches due 2021 and 2019.

Twitter said it will enter a series of hedge transactions with purchasers of the notes that may reduce dilution of its shares in the event of a conversion.

Separately, Twitter amended its $1 billion unsecured revolving credit facility Wednesday to boost the amount of available borrowing.