Twilio Inc. Announces Proposed Public Offering of Class A Common Stock

Rhea-AI Summary

Twilio Inc. (NYSE: TWLO) has launched an underwritten public offering of $1,000,000,000 of its Class A common stock, with an option for underwriters to purchase an additional $150,000,000 of shares. The offering is subject to market conditions and may not be completed as planned. Morgan Stanley and J.P. Morgan are leading the offering, with other firms assisting. The offering is disclosed under a previously filed automatic shelf registration statement with the SEC, with further details available through the SEC and company contacts.

Positive

• Potential to raise $1 billion to strengthen financial position.
• Increased capital could facilitate growth and investment opportunities.

Negative

• Possible share dilution impacting existing shareholders.
• Market reaction may be negative due to concerns over equity offering.

Twilio Inc. (“Twilio”) (NYSE: TWLO), the leading cloud communications platform, today announced that it has commenced an underwritten public offering of $1,000,000,000 of shares of its Class A common stock. All of the shares in the proposed offering will be sold by Twilio. In addition, Twilio expects to grant the underwriters a 30-day option to purchase up to an additional $150,000,000 of shares of its Class A common stock in the offering. The proposed offering is subject to market and other conditions, and there can be no assurance as to whether or when the proposed offering may be completed, or as to the actual size or terms of the offering.

Morgan Stanley and J.P. Morgan 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”) and automatically became effective upon filing. A preliminary prospectus supplement and accompanying prospectus relating to and describing the terms of the offering have been filed with the SEC and are available on the SEC’s website at www.sec.gov. Copies of the final prospectus supplement and accompanying prospectus, when available, may be obtained from Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014; or 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.

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

About Twilio Inc.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210218006044/en/

FAQ

What is the amount of the public offering by Twilio (TWLO)?

Twilio is offering $1,000,000,000 of its Class A common stock.

Who are the underwriters for Twilio's public offering?

Morgan Stanley and J.P. Morgan are acting as joint book-running managers.

What is the purpose of Twilio's stock offering?

The funds will potentially be used to strengthen financial position and support growth initiatives.

Is there a risk of dilution for Twilio shareholders?

Yes, the public offering may lead to dilution for existing shareholders.

What is the total potential offering size for Twilio (TWLO)?

Including the underwriters' option, the total potential offering size is $1,150,000,000.