Twilio Announces Proposed Public Offering of $1.0 Billion of Senior Notes

Rhea-AI Summary

Twilio Inc. (NYSE: TWLO) has announced its intention to offer $1.0 billion of unsecured senior notes, registered under the Securities Act of 1933. The terms, including interest rates and offering price, will be set by Twilio. The net proceeds are planned for general corporate purposes, such as acquisitions, strategic investments, debt refinancing, capital expenditures, working capital, and share repurchases. The offering is managed by J.P. Morgan, Morgan Stanley, and BofA Securities, with certain co-managers involved. This release does not constitute an offer to sell the notes.

Positive

• Intended use of proceeds includes acquisitions and strategic investments, which could drive future growth.
• The issuance of senior notes can help refinance existing debt, potentially improving financial stability.

Negative

• Issuing $1.0 billion in unsecured notes may lead to shareholder dilution.
• Market reaction could be negative if investors perceive the offering as a sign of financial distress.

Twilio Inc. (“Twilio”) (NYSE: TWLO) today announced that it intends to offer, subject to market and other conditions, $1.0 billion of unsecured senior notes in a transaction registered under the Securities Act of 1933, as amended. The offering will be made only by means of a prospectus supplement and accompanying prospectus under Twilio’s effective shelf registration statement. The interest rate, offering price, and other terms of the notes will be determined by Twilio.

Twilio intends to use the net proceeds of the offering for general corporate purposes, which may include the acquisition of other companies or businesses, strategic investments, the refinancing or repayment of debt, capital expenditures, working capital and share repurchases.

J.P. Morgan, Morgan Stanley and BofA Securities are acting as joint book-running managers for the proposed offering. Academy Securities, Cabrera Capital Markets and Siebert Williams Shank are acting as co-managers for the proposed offering.

The public offering is being made pursuant to an automatic shelf registration statement on Form S-3 that was filed by Twilio with the U.S. Securities and Exchange Commission (the “SEC”) on May 29, 2020 and automatically became effective upon filing. A preliminary prospectus supplement and accompanying prospectus relating to and describing the terms of the offering will be filed with the SEC and are available on the SEC’s website at www.sec.gov. Copies of the preliminary prospectus supplement and accompanying prospectus, when available, may be obtained from J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at (866) 803-9204, or by email at prospectus-eq_fi@jpmchase.com; or Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the notes, nor shall there be any sale of the notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

About Twilio

Millions of developers around the world have used Twilio to unlock the magic of communications to improve any human experience. Twilio has democratized communications channels like voice, text, chat, video, and email by virtualizing the world’s communications infrastructure through APIs that are simple enough for any developer to use, yet robust enough to power the world’s most demanding applications. By making communications a part of every software developer’s toolkit, Twilio is enabling innovators across every industry — from emerging leaders to the world’s largest organizations — to reinvent how companies engage with their customers.

Source: Twilio Inc

View source version on businesswire.com: https://www.businesswire.com/news/home/20210303005512/en/

FAQ

What details are available about the $1 billion offering by Twilio?

Twilio plans to offer $1.0 billion of unsecured senior notes with terms to be determined. Proceeds will support various corporate needs.

What is the purpose of the funds raised from the unsecured senior notes by Twilio?

The funds will be used for general corporate purposes, including acquisitions, debt refinancing, and share repurchases.

Who is managing the proposed offering for Twilio?

J.P. Morgan, Morgan Stanley, and BofA Securities are the joint book-running managers for the offering.

How will the issuance of senior notes affect Twilio's shareholders?

The issuance may lead to dilution of shares, impacting existing shareholders, especially if perceived negatively by the market.