Summary by Moomoo AI
On May 6, 2024, Block, Inc., a Delaware-incorporated technology company, announced the entry into a purchase agreement with Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, and Morgan Stanley & Co. LLC, acting as representatives of the initial purchasers. The agreement pertains to the sale of $2.0 billion in aggregate principal amount of 6.50% Senior Notes due 2032, which was an increase from the initially announced $1.5 billion. The offering targets qualified institutional buyers and is exempt from registration under the Securities Act of 1933. Block intends to use the proceeds for general corporate purposes, including debt repayment, potential acquisitions, capital expenditures, investments, and working capital. The notes will mature on May 15, 2032, with interest payable semi-annually. Block has the option to redeem the notes before May 15, 2027, at a specified price plus a make-whole premium. The indenture, entered on May 9, 2024, includes covenants limiting the company's ability to incur certain indebtedness, among other restrictions. The company also announced the issuance of a press release regarding the offering and its upsizing on the same day.