Twitter Prices $1 Bln Convertible Notes Offering; Sees $989 Mln In Net Proceeds

(RTTNews) - Twitter, Inc. (TWTR) announced Thursday the pricing of $1 billion aggregate principal amount of 0.25% convertible senior notes due 2024 in a private placement to qualified institutional buyers.

Twitter also granted the initial purchasers of the notes a 30-day option to purchase up to an additional $150 million aggregate principal amount of the notes, to cover over-allotments, if any.

The sale of the notes to the initial purchasers is expected to settle on June 11, subject to customary closing conditions.

The company expects the offering to result in approximately $989.0 million in net proceeds to Twitter after deducting the initial purchasers' discount and estimated offering expenses payable by Twitter.

The notes will be senior, unsecured obligations of Twitter and will bear interest at a rate of 0.25% per year. Interest will be payable semi-annually in arrears on June 15 and December 15 of each year, beginning on December 15, 2018. The notes will mature on June 15, 2024, unless earlier repurchased or converted.

In the net proceeds, Twitter expects to use $70.6 million to pay the cost of the convertible note hedge transactions to raise the effective conversion price of the notes from Twitter's perspective, and to use the remaining proceeds of the offering for general corporate purposes. This may include the payment of amounts due upon conversion, at maturity or upon repurchase of its 0.25% Convertible Senior Notes due 2019.