Twitter Announces Convertible Notes Offering - Quick Facts

(RTTNews) - Twitter, Inc. (TWTR) announced its intention to offer $1.0 billion aggregate principal amount of convertible senior notes due in 2024 in a private placement to qualified institutional buyers. Twitter also expects to grant the initial purchasers of the notes a 30-day option to purchase up to an additional $150.0 million aggregate principal amount of the noes, to cover over-allotments, if any. Twitter expects to enter into privately negotiated convertible note hedge transactions with one or more of the initial purchasers or their affiliates or other financial institutions.

Twitter expects to use a portion of the net proceeds to pay the cost of the convertible note hedge transactions, and to use the remaining proceeds of the offering for general corporate purposes, which may include the payment of amounts due upon conversion, at maturity or upon repurchase of its 0.25% Convertible Senior Notes due 2019.