Twitter has set price talk at a 0.125%-0.625% coupon and 40%-45% conversion premium on a US$1bn convertible bond offering, one of the leads on the deal told IFR.
Goldman Sachs, Morgan Stanley and JP Morgan are expected to price the deal later on Wednesday.
The 144A offering, due in 2024, coincides with Twitter’s addition to the S&P 500 index which will occur on Thursday. That news helped drive Twitter’s common stock price 5.1% higher on Tuesday to US$38.90.
The company is using net proceeds for general corporate purposes and to purchase a call-spread to offset future dilution and to repurchase an existing 0.25% convertible that matures in 2019.
That was part of a two-part convertible issue that Twitter sold in September 2014, comprising of five-year and seven-year tranches, according to IFR data.
