While, the company said that it will raise the money by offering $1 billion in convertible senior notes that will mature in 2026. At that point, it will pay investors in cash, stock or a combination of both.
The interest rate, initial conversion rate, and other terms of the notes will be determined at the time of pricing of the offering. It also intends to grant the initial purchasers of the debt securities an option to purchase up to an additional $150 million principal amount of notes.
Snap Inc. was founded by Evan Spiegel and Bobby Murphy in 2011. It is an American technology and camera company, based out of California. The company claims that its products empower people to express themselves, live in the moment, learn about the world, and have fun together.
“Snap may also use a portion of the net proceeds to acquire complementary businesses, products, services, or technologies or for repurchases of Snap’s common stock, although it has no commitments for any material acquisitions or stock repurchases at this time,” the company stated.