Snap Inc. raised $988.3 million from $1 billion 0% convertible senior notes, according to Benzinga. The notes, due 2027, were issued in a secondary private institutional placement.
The initial buyers of Snap notes can purchase more up to $150 million.
The notes initial conversion price is $89.25, a 47.5% premium to the $60.51 the stock closed on April 27, 2021.
The notes will be redeemed after May 5,2024 subject to Snap’s reported sale price per share exceeding 130% of the conversion price.
Snap entered into capped call transactions with specific financial entities to offset any possible stock dilution due to the note conversion.
The cap price for all capped call transactions is $121.02, a 100% premium to the stock closing price on April 27, 2021.Snap stock is currently declining. SNAP: NYSE is down 1.09%
