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