BackTwitter increases convertible debt sale to $1.8 billion
Twitter is selling convertible bonds in two $900 million pieces, one maturing in 5 years and one coming due in 7 years
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New York: Twitter Inc. expanded its first-ever debt sale by 20% to $1.8 billion, getting more funding for acquisitions and expansion.
The San Francisco-based microblogging company is selling convertible bonds in two $900 million pieces, one maturing in 5 years and one coming due in 7 years, according to a statement on Friday on its website. The notes have a conversion price of about $77.64 a share.
Twitter, which isn’t projected to be profitable this year, has been investing to build up its advertising business and add engineers who can help tweak its product to appeal to a broader audience. Executives see an opportunity in the debt market to raise more cash cheaply with little immediate dilution of their shareholders’ ownership, a person familiar with the matter said earlier this week. The company was inspired by technology leaders, including Google Inc. and Netflix Inc., successfully offering debt while borrowing remains inexpensive, said the person, who asked not to be identified because the plans were private.
Twitter rose 0.1% to $52.70 at 8:59 am New York. The stock was down 17% for the year through Friday’s close. BLOOMBERG
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