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.
Snap Inc. is a technology company. Its product, Snapchat, is a visual messaging application that enhances relationships with friends, family, and the world. Snapchat is the Company's core mobile device application and contains five tabs, complemented by additional tools that function outside of the application. Snapchatters can interact with all five, or a subset of those five tabs. Additionally, the Company offers Snapchat+, its subscription product that provides subscribers access to exclusive, experimental, and pre-release features. Snapchat+ offers a range of features from allowing Snapchatters to customize the look and feel of their application, to giving special insights into their friendships. It also offers Snapchat for Web, a browser-based product that brings Snapchats calling and messaging capabilities to the Web. Its advertising products include AR Ads, AR Lenses and Snap Ads. Snap Ads include Single Image or Video Ads, Story Ads, Collection Ads, Dynamic Ads and Commercials.