By Paul A. Harris
Portland, Ore., Dec. 5 – Twitter, Inc. priced an upsized $700 million issue of eight-year senior bullet notes (Ba2/BB+) at par to yield 3 7/8% on Thursday, according to market sources.
The issue size increased from $600 million.
The yield printed at the tight end of yield talk in the 4% area. Official talk came tight to earlier guidance in the 4 1/8% area. Initial guidance had the notes coming to yield in the mid-4% area.
The deal was five-times to six-times oversubscribed at 4%, according to a trader, who added that a lot of accounts put in stop orders at 4%.
Nevertheless it came inside 4%, the trader conceded, adding that at 3 7/8% it seemed “priced to perfection,” but was regardless trading above the new issue price in the secondary at par ¼ bid late Thursday afternoon, indicating that a lot of investors decided to stay in even though pricing came through the 4% bogey.
Bookrunners were J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, BofA Securities Inc. and Wells Fargo Securities LLC.
The San Francisco-based social networking service plans to use the proceeds for general corporate purposes, which may include capital expenditures, investments, debt repayment, working capital and potential acquisitions and strategic transactions.
| Issuer: | Twitter Inc.
|
| Amount: | $700 million, increased from $600 million
|
| Maturity: | Dec. 15, 2027
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, BofA Securities Inc. and Wells Fargo Securities LLC
|
| Coupon: | 3 7/8%
|
| Price: | Par
|
| Yield: | 3 7/8%
|
| Spread: | 213 bps
|
| Call protection: | Non-callable
|
| Trade date: | Dec. 5
|
| Settlement date: | Dec. 9
|
| Ratings: | Moody's: Ba2
|
| S&P: BB+
|
| Distribution: | Rule 144A for life
|
| Price talk: | 4% area
|
| Marketing: | Roadshow
|
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