Twitter Seeks $1.25B From Private Debt Offering

Twitter Inc (NYSE: TWTRplans to offer $1.25 billion convertible senior notes due in 2026 in a private institutional offering.

  • The offering proceeds would be partly utilized to pay towards the convertible note hedge, warrant transactions. The remaining proceeds would be used towards payment upon conversion or at maturity of its 1% Convertible Senior Notes due 2021 and general corporate purposes, including capital expenditures, working capital, and potential acquisitions.
  • The initial purchasers are estimated to receive a 13-day option to procure additional notes of $187.5 million.
  • Twitter plans to enter into privately negotiated convertible note hedge and warrant transactions with one or more of the initial purchasers.
  • In the last quarter earnings, the company mentioned plans to grow its headcount by over 20% in 2021, especially in engineering, product, design, and research. Its total costs and expenses are expected to grow by 25% or more. The company investments also include the final buildout of a new data center in 2021 to support audience and revenue growth.
  • TWTR stock has climbed over 133% in the last year.
  • Price action: TWTR stock was up 1.14% at $77.94 in the pre-market session on the last check Monday.

Posted In: NewsOfferingsTechMedia

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.