Snap Raises $1.3B Via Upsized Debt Offering - Snap (NYSE:SNAP)

Snap Inc 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.