Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Twitter Inc (TWTR) is Preparing For a Debt Offering

Twitter Inc (NYSE:TWTR) is a young growing business and it looks for future possibilities as competitors might step on its tail. The company is planning to raise as much as $1.5 billion dollars in the form of debt offerings and Sarah Frier, on Bloomberg TV, presented the company’s latest intentions.


It is believed that there will be two chunks, valued at $650 million of five and seven years bonds and Twitter Inc (NYSE:TWTR) will also allow another $100 million of each to be traded in case of exceeding demand. If the deal falls through, the tech firm will raise almost the same amount as during its Initial Public Offering, which was about $1.8 billion. Now, curious minds are left to figure out what Twitter Inc (NYSE:TWTR) will do with this pile of cash? Some speculations aim at the fact that the company saw a possibility of obtaining good money at a relative cheap price, other point at their growth perspectives.

“[…] They want to continue to expand their business, they’re expanding overseas, they’re making big acquisitions, they acquired Gnip, the data provider, earlier this year for more that $100 million […],” stated Sarah Frier.

Starting with July 29, when it announced earnings, Twitter Inc (NYSE:TWTR)’s stock price began rising and apparently it has no intentions of stopping. It currently trades at little less than $56.7, about 0.4% lower than yesterday. Anyways, this particular jump from high 30s’ values at the end of July is one of the reasons that make collecting money relatively easy. The decision of a debt offering might have been the idea of Twitter Inc (NYSE:TWTR)’s new CFO, Anthony Noto, a former banker at Goldman Sachs Group Inc (NYSE:GS) that led the company’s IPO.

All the indicators point at the tech giant preparing for expansion while relying on its current reputation to find financial support easily. We have no final coordinates, but the direction is quite clearly drawn.

Disclosure: none

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.