Fresh off a successful earnings report, Snap announced today that it was looking to raise $750 million in a new debt offering.
This upcoming offering will consist of $750 million in convertible senior notes that will mature May 1, 2025. It will be a private placement to qualified institutional buyers and Snap is looking to give buyers the option to secure $112.5 million worth of notes down the road, as well.
Snap’s Q1 earnings impressed investors but the company is still losing plenty of cash and it’s clear that the full impact of the digital ad market’s downturn won’t be seen until the company’s Q2 earnings. On Tuesday, the company shared it had logged $462.5 million in revenue for the quarter and a $306 million net loss.
The COVID-19 crisis has pushed private and public companies to take a long, hard look at their balance sheets. For well-positioned companies, raising debt is an attractive option for combating looming market uncertainty.
This isn’t the first time Snap has looked to a debt offering either. In August, the company announced they were pursuing a $1.1 billion debt offering.