Twitter issue convertible bonds

Recently, Twitter issued a convertible bond valued at US$1.8 billion, which is the largest financing since the company’s IPO and is also its first bond financing. Twitter plans to use the funds for acquisitions and expansion.

It is reported that the price of the convertible bonds issued by Twitter is 77.64 US dollars higher than Friday's closing price of 52.64 US dollars, a premium of 47%. The bonds consist of a five-year $900 million bond and a seven-year $900 million bond. Among them, the five-year convertible bond interest rate is 0.25%, and the seven-year convertible bond interest rate is 1%. Initially, Twitter plans to raise $1.5 billion.

Bill Vangold, co-founder of Hillside Advisors, a US consulting firm, said that this is a landmark deal and investors will definitely compete. "For Twitter, this major deal will help them raise more." The funds.” At present, Twitter is recruiting some engineers, hoping to improve the product's attractiveness to users.

It is understood that Twitter executives have seen cheap financing opportunities from the bond market after the IPO, so they will not dilute shareholders' equity in the short term. Analysts expect Twitter’s target share price to be US$54.28 in the coming year.