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- Snap Inc (NYSE:SNAP) priced $1.3 billion 0.125% convertible senior notes due 2028 in an upsized private institutional offering.
- Snap upsized the offering from $1.25 billion. The estimated net proceeds are $1.28 billion.
- Snap also granted the initial purchasers of the notes an option to purchase up to an additional $200 million notes.
- The notes will be general unsecured obligations of Snap, and interest of 0.125% per year will be payable semiannually in arrears.
- Snap may not redeem the notes before March 5, 2025. It may redeem any portion of the notes if the last reported sale price has been at least 130% of the conversion price.
- The initial conversion price represents a premium of 50% to Snap's February 8 closing price of $37.56.
- Snap looks to use $153.4 million of the net proceeds to pay the cost of the capped call transactions and the remaining for general corporate purposes.
- Snap forged the capped call transactions in connection with the pricing of the notes.
- Snap held $2.25 billion in convertible senior notes as of December 31, 2021.
- Price Action: SNAP shares traded higher by 0.45% at $37.73 in the premarket session on the last check Wednesday.
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