Twitter Inc said on Monday that it plans to offer 1.25 billion dollars aggregate principal amount of convertible senior notes due in 2026.
The company also expects to grant the initial purchasers of the notes a 13-day option to purchase up to an additional 187.5 million dollars aggregate principal amount of the notes, to cover over-allotments, if any.
The company stated that the notes will be unsecured, senior obligations of the company, and interest will be payable semi-annually in arrears.
The notes will be convertible into cash, shares of Twitter’s common stock, or a combination thereof, at Twitter’s election.
The interest rate, initial conversion rate and other terms of the notes are to be determined upon pricing of the offering.
Twitter noted that it expects to use a portion of the net proceeds from the offering to pay the cost of the convertible note hedge transactions.
And also the remaining proceeds to pay any amounts due upon conversion or at maturity of its 1.00 percent Convertible Senior Notes due 2021 and for general corporate purposes, including capital expenditures, working capital and potential acquisitions.