Snap Inc. announced on Thursday the launch of a $650 million convertible bond issue, a transaction that comes on the heels of last month's well-received earnings release.

The owner of the Snapchat messaging service plans to market bonds maturing in 2030, with a coupon of 0.5%, in a private placement reserved for institutional investors.

The transaction, which comes with a $100 million over-allotment option, is expected to close on Monday, May 13.

The Californian group, which intends to use part of the proceeds to repay a previous bond issue maturing in 2026, is capitalizing on its successful quarterly publication on April 26, which boosted its stock market appeal.

Since then, its shares have surged by over 46%.

Copyright (c) 2024 CercleFinance.com. All rights reserved.