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Snap Inc | 8-K: Indenture and Notes and Capped Call Transactions

SEC announcement ·  May 13 17:06
Summary by Moomoo AI
On May 8, 2024, Snap Inc. entered into a purchase agreement with Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, and BofA Securities, Inc., as representatives of several purchasers, for the sale of $650 million in 0.50% Convertible Senior Notes due 2030. An option for an additional $100 million in notes was fully exercised the following day. The notes, unsecured and unsubordinated, will pay semi-annual interest and mature on May 1, 2030, unless earlier repurchased, redeemed, or converted. Snap Inc. may redeem the notes starting May 5, 2027, under certain conditions. The indenture includes customary terms, covenants, and events of default. The notes are convertible into cash, shares of Snap Inc.'s Class A common stock, or a combination thereof, at Snap Inc.'s election, under specific conditions...Show More
On May 8, 2024, Snap Inc. entered into a purchase agreement with Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, and BofA Securities, Inc., as representatives of several purchasers, for the sale of $650 million in 0.50% Convertible Senior Notes due 2030. An option for an additional $100 million in notes was fully exercised the following day. The notes, unsecured and unsubordinated, will pay semi-annual interest and mature on May 1, 2030, unless earlier repurchased, redeemed, or converted. Snap Inc. may redeem the notes starting May 5, 2027, under certain conditions. The indenture includes customary terms, covenants, and events of default. The notes are convertible into cash, shares of Snap Inc.'s Class A common stock, or a combination thereof, at Snap Inc.'s election, under specific conditions. Concurrently, Snap Inc. entered into capped call transactions to reduce potential dilution upon conversion of the notes or offset cash payments required upon conversion. These transactions are expected to affect the market price of Snap Inc.'s Class A common stock. On May 13, 2024, Snap Inc. also repurchased a portion of its outstanding 2025 and 2026 Convertible Senior Notes and terminated related capped call transactions. The company included forward-looking statements regarding the expected effects of the capped call transactions and the repurchase settlements.
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