Twitter Prices Offering of Senior Notes

Rhea-AI Summary

Twitter, Inc. (NYSE: TWTR) has priced an offering of $1 billion in senior notes with an interest rate of 5.000%, maturing on March 1, 2030. The offering is targeted at qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S. Closing is anticipated on February 25, 2022, pending customary conditions. Proceeds will support general corporate purposes, including debt repayment and stock repurchases. The notes can be redeemed early with associated premiums and require repurchase in specific change of control scenarios.

Positive

• Twitter plans to use net proceeds for strategic purposes including capital expenditures and potential acquisitions.
• The interest rate of 5.000% is relatively competitive for senior notes.

Negative

• The issuance may lead to shareholder dilution if stock repurchases occur.
• No specific strategic transactions or acquisitions are currently lined up.

SAN FRANCISCO, Feb. 23, 2022 /PRNewswire/ -- Twitter, Inc. (NYSE: TWTR) today announced the pricing of $1 billion aggregate principal amount of its 5.000% senior notes due 2030 (the "Notes"). The Notes are being offered to persons reasonably believed to be 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 sale of the Notes is expected to close on February 25, 2022, subject to the satisfaction of customary closing conditions. Interest on the Notes will be payable in cash semi-annually in arrears, beginning on September 1, 2022.

The Notes will mature on March 1, 2030, unless earlier repurchased or redeemed. Holders of the Notes may require Twitter to repurchase the Notes upon the occurrence of certain change of control events at a purchase price equal to 101% of the principal amount thereof plus accrued and unpaid interest, if any.

Prior to December 1, 2029, Twitter may redeem the Notes, in whole or in part, at a price equal to 100% of the principal amount thereof plus a "make-whole" premium and accrued and unpaid interest, if any. On and after December 1, 2029, Twitter may redeem the Notes at 100% of the principal amount plus accrued and unpaid interest, if any.

Twitter intends to use the net proceeds from this offering for general corporate purposes, which may include capital expenditures, investments, repayment of debt, repurchases of Twitter's common stock, working capital and potential acquisitions and strategic transactions. From time to time Twitter evaluates potential strategic transactions and acquisitions of businesses, technologies or products. Currently, however, Twitter does not have any agreements with respect to any such material strategic transactions or acquisitions.

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.

Contacts

Investors:
ir@twitter.com

Press:
press@twitter.com

View original content:https://www.prnewswire.com/news-releases/twitter-prices-offering-of-senior-notes-301489196.html

SOURCE Twitter, Inc.

FAQ

What are the details of the TWTR senior notes offering?

Twitter has priced an offering of $1 billion senior notes at 5.000% interest, maturing on March 1, 2030.

When will the TWTR senior notes offering close?

The closing of the offering is expected on February 25, 2022.

How will Twitter use the proceeds from the senior notes?

The proceeds will be used for general corporate purposes including debt repayment and potential acquisitions.

What are the redemption terms for TWTR senior notes?

Twitter may redeem the notes before December 1, 2029, at the principal amount plus a make-whole premium.

What happens in case of a change of control for TWTR's senior notes?

Holders can require Twitter to repurchase the notes at 101% of the principal amount plus accrued interest.