Twitter seeking to raise $1.3bn in debt offering
MICROBLOGGING site Twitter yesterday announced it planned to raise $1.3bn (£800m) to invest in acquisitions and expansion.
The company planned two offerings worth $650m each in convertible senior notes due to mature in 2019 and 2021, the microblogging website said in a filing.
Twitter will also grant initial purchasers an option to buy up to $100m in each of the offerings.
Twitter, which isn’t projected to be profitable this year, has been investing to build up its advertising business and add engineers who can help tweak its product to appeal to a broader audience.
Executives see an opportunity in the debt market to raise more cash cheaply with little immediate dilution of their shareholders’ ownership, according to a source familiar with the matter.
The company was inspired by technology leaders, including Google and Netflix, successfully offering debt while borrowing remains inexpensive, the source said.
A spokesperson for the San Francisco-based company declined to comment.