Snap Prices Private Offering Of $650 Mln Of Senior Notes

(RTTNews) - Snap Inc. (SNAP) on Thursday announced the pricing of $650 million, 0.50% convertible senior notes due 2030 in a private placement.

The company intends to use the net proceeds to pay the cost of the capped call transactions, repurchase its outstanding convertible senior notes due 2025 and 2026, and general corporate purposes.

The sale of the notes is expected to be closed on May 13.

The company has granted the initial purchasers an option to purchase up to an additional $100 million of notes.

Snap estimates that the net proceeds from the offering to be approximately $641.6 million, or around $740.4 million, if the initial purchasers exercise their option to purchase additional notes in full.

The notes will have an initial conversion rate of 45.0846 shares of Snap Class A common stock per $1,000 principal amount of notes.

This is equivalent to an initial conversion price of around $22.18 per share, which represents a premium of around 32.5 percent to the $16.74 per share closing price of class A share at the NYSE on May 8.