Snap revealed the pricing of an expanded issuance of $550 million worth of senior notes, with maturity set for 2034.
Snap Inc. Announces $550 Million Senior Notes Offering
Snap Inc., the parent company of popular social media platform Snapchat, has announced a private offering of $550 million senior notes due 2034. The move is aimed at refinancing existing debt and funding the company's expansion in augmented reality (AR) technology.
The notes will bear interest at a rate of 6.875% per annum, payable semiannually. The offering is structured as senior unsecured notes, with the notes and related guarantees to be provided by certain domestic subsidiaries of Snap Inc.
Snap plans to use the net proceeds, along with cash on hand, to repurchase certain outstanding convertible senior notes. This strategic refinancing allows Snap to better manage its liabilities amid competitive pressures and maintain investment in innovative product areas despite paying a relatively high interest rate.
The company estimates that the net proceeds from the offering will be approximately $541.3 million after deducting the original issue discount and offering expenses.
Moody's, Fitch, and Standard & Poor's have assigned ratings to Snap and the offering of the notes. Moody's assigned a "B1" rating with a positive outlook, Fitch assigned a "BB" rating with a stable outlook, and Standard & Poor's assigned a "B+" rating with a stable outlook.
It's important to note that the forward-looking statements in this press release are subject to risks and uncertainties related to Snap's financial performance, competition, managing growth, compliance, intellectual property, team, debt, acquisitions, and potential impacts of climate change, natural disasters, health epidemics, macroeconomic conditions, and war. These risks, uncertainties, and other factors are described in Snap's Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, and other filings with the SEC.
The notes will not be registered under the Securities Act or any state securities laws and will only be offered to qualified institutional buyers. The sale of these notes is expected to close on August 12, 2025, subject to closing conditions.
The company believes the camera presents a significant opportunity to improve communication and empower expression, learning, and having fun. Snap Inc. (NYSE: SNAP) is a technology company that has been at the forefront of innovation in the social media sector.
For more information, please visit Snap Inc.'s website or contact the company's investor relations or press office.
This news is provided by Business Wire via QuoteMedia.
- Snap Inc., in an effort to manage its debt and invest in augmented reality technology, has decided to delve into the realm of finance by offering $550 million senior notes, which are intended for investing in their business.
- Amidst the competitive business environment, Snap has opted to refinance existing debts and fortify its resources through investing in various product areas, despite the relatively high interest rate associated with the offering.
