By Paul A. Harris
Portland, Ore., March 4 – Twilio Inc. priced $1 billion of senior notes (Ba3/BB) in two tranches on Thursday, according to market sources.
The deal included a $500 million tranche of eight-year notes that priced at par to yield 3 5/8%. The yield printed at the tight end of yield talk in the 3¾% area. Initial guidance was 4% to 4¼%.
The offering also included $500 million of 10-year notes that priced at par to yield 3 7/8%. The yield printed at the tight end of yield talk in the 4% area. Initial guidance had the 10-year notes coming 25 basis points behind the eight-year notes.
As of mid-morning Thursday, Twilio was playing to a big book, according to a bond trader, who said that the market heard orders across both tranches totaled more than $5 billion.
J.P. Morgan Securities LLC was at the left of a syndicate of bookrunners that also includes Morgan Stanley & Co. LLC, BofA Securities Inc., Academy Securities Inc., Cabrera Capital Markets LLC and Siebert Williams Shank & Co. LLC.
The San Francisco-based cloud communications platform plans to use the proceeds for general corporate purposes, which may include acquisitions, debt repayment, capital expenditures, working capital and share repurchases.
| Issuer: | Twilio Inc.
|
| Amount: | $1 billion
|
| Securities: | Senior notes
|
| Managers: | J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, BofA Securities Inc., Academy Securities Inc., Cabrera Capital Markets LLC and Siebert Williams Shank & Co. LLC
|
| Trade date: | March 4
|
| Settlement date: | March 9
|
| Ratings: | Moody's: Ba3
|
| S&P: BB
|
| Distribution: | SEC registered
|
| Marketing: | Roadshow
|
|
|
| Eight-year notes
|
| Amount: | $500 million
|
| Maturity: | March 15, 2029
|
| Coupon: | 3 5/8%
|
| Price: | Par
|
| Yield: | 3 5/8%
|
| Spread: | 234 bps
|
| Call protection: | Three years
|
| Price talk: | 3¾% area
|
|
|
| 10-year notes
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| Amount: | $500 million
|
| Maturity: | March 15, 2031
|
| Coupon: | 3 7/8%
|
| Price: | Par
|
| Yield: | 3 7/8%
|
| Spread: | 234 bps
|
| Call protection: | Five years
|
| Price talk: | 4% area
|
|
|
|
|
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