Roblox Announces Proposed $1.0 Billion Offering of Senior Notes

Rhea-AI Summary

Roblox Corporation (NYSE: RBLX) plans to offer $1.0 billion in senior unsecured notes to qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S. The specific terms, including interest rate and maturity date, will be set through negotiations. Proceeds from this offering are intended for general corporate purposes, including production, capital expenditures, investments, working capital, and potential acquisitions. The notes have not been registered under the Securities Act, and this announcement does not constitute an offer to sell or buy the Notes.

Positive

• Plans to raise $1.0 billion through senior unsecured notes.
• Proceeds to be used for general corporate purposes, potentially benefiting growth.

Negative

• The senior unsecured notes may lead to shareholder dilution.
• The offering's specific terms remain uncertain and subject to negotiation.

SAN MATEO, Calif.--(BUSINESS WIRE)-- Roblox Corporation (NYSE: RBLX) today announced that it intends to offer, subject to market and other considerations, $1.0 billion aggregate principal amount of senior unsecured notes (the “Notes”) through an offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and outside the United States to non-U.S. persons pursuant to Regulation S under the Securities Act.

The interest rate, redemption provisions, maturity date and other terms of the Notes will be determined by negotiations between Roblox and the initial purchasers.

Roblox intends to use the net proceeds from this offering for general corporate purposes, which may include production and development, capital expenditures, investments, working capital, and potential acquisitions and strategic transactions.

This announcement does not constitute an offer to sell or a solicitation of an offer to buy the Notes, nor shall there be any offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. The Notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.

ROBLOX and the Roblox logo are among the registered and unregistered trademarks of Roblox Corporation in the United States and other countries. © 2021 Roblox Corporation. All rights reserved.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211025005444/en/

Anna Yen

Roblox Investor Relations

ir@roblox.com

Stefanie Notaney

Roblox Corporate Communications

press@roblox.com

Source: Roblox Corporation

FAQ

What is Roblox Corporation planning to offer?

Roblox Corporation intends to offer $1.0 billion in senior unsecured notes.

What will the proceeds from the Roblox offering be used for?

The proceeds will be used for general corporate purposes including production, capital expenditures, and potential acquisitions.

Who can purchase the notes from Roblox?

The notes are being offered to qualified institutional buyers and non-U.S. persons.

What are the risks associated with Roblox's offering?

The offering could lead to shareholder dilution and the specific terms of the notes are still under negotiation.