Snap Plans to Issue $500 Million Worth of Senior Notes with Maturity in 2034 Privately
Snap Inc Announces Repurchase of Convertible Senior Notes and Offering of Senior Notes
In a recent development, Snap Inc, the technology company that believes the camera offers a great opportunity to improve communication and living, has announced its plans to repurchase its outstanding convertible senior notes due in 2026, 2027, 2028, and 2030. This strategic move is aimed at managing its debt profile more efficiently and optimising its capital structure.
The company plans to raise funds for this purpose through a new senior notes offering. Snap Inc is planning to offer $500 million senior notes due in 2034. The proceeds from this offering, along with cash on hand, will be used to repurchase approximately $157.4 million (2026 notes), $246.3 million (2027 notes), and $185.8 million (2028 notes) of outstanding convertible notes, totaling about $550.1 million.
This move could potentially drive upward pressure on Snap's Class A common stock price as holders of these convertible notes unwind hedge positions by buying Snap shares or derivatives. However, Snap Inc undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release.
The forward-looking statements are subject to various risks and uncertainties, including financial performance, profitability, cash flow, user, partner, and advertiser attraction and retention, competition, managing growth and future expenses, compliance with laws and executive actions, intellectual property, market segments, team members and key personnel, debt repayment and financing, future acquisitions, divestitures, or investments, and potential adverse impacts of climate change, natural disasters, health epidemics, macroeconomic conditions, and war or other armed conflict.
The notes will only be offered or sold to qualified institutional buyers and non-U.S. persons. The notes will be unsecured senior obligations of Snap Inc and will be guaranteed by certain domestic subsidiaries of Snap Inc.
For more information, investors and analysts can contact [email protected], while press inquiries can be directed to [email protected]. The source of this news can be found on Business Wire. This press release is not an offer to sell or solicit an offer to buy any securities.
[1] Business Wire
[2] Seeking Alpha
[3] MarketWatch
[4] CNBC
Investors might find the offer of Snap Inc's senior notes due in 2034 an avenue for investing, as the proceeds from this offering will help in financing the repurchase of its outstanding convertible senior notes. This business decision could have potential implications for the company's finance structure and debt management.
