Snap Boosts Debt Sale To $850 Million (From $750M) On Strong Demand

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Snapchat parent Snap said Friday it will selling $850 million in senior notes – up from a $750 million debt offering it announced yesterday – on strong investor demand for the securities.

Snap granted the initial purchasers of the notes an option to purchase up to an additional $150 million principal amount of notes. The sale of the notes is expected to close on April 28.

Snap said in its SEC filing yesterday it “intends to use the net proceeds from the offering for general corporate purposes, including working capital, operating expenses, capital expenditures” or to acquire “complementary businesses, products, services, or technologies.”

The company also said it may use the case to repurchases Snap’s common stock, “although it has no commitments for any material acquisitions or stock repurchases at this time.”

Snap posted strong quarterly earnings earlier this week, with a jump in users, a surge in revenue and narrower than expected net loss.

Media and entertainment companies have been raising cash at a rapid rate for a cushion against the economic impact of the coronavirus pandemic. Snap, like others, pulled its financial guidance for the second quarter due to COVID-19 and said its advertising revenue began to slow in March when the stay-at-home orders took effect.

 

This article was printed from https://deadline.com/2020/04/snap-boosts-debt-sale-to-850-million-demand-1202917163/