Snap announces the pricing of an expanded senior notes issuance worth $550 million, set to mature in 2034.
Snap Inc. Announces $550 Million Bond Offering
Tech giant Snap Inc. has announced a private offering of $550 million senior notes due in 2034. The notes, which will bear interest at a rate of 6.875% per annum, payable semiannually on March 15 and September 15, starting March 15, 2026, are expected to close on August 12, 2025, subject to customary closing conditions.
The purpose of this bond offering is to repurchase a significant portion of Snap's outstanding convertible senior notes due in 2026, 2027, and 2028, totaling approximately $589.5 million. Any remaining net proceeds will be used for general corporate purposes, including working capital, operating expenses, capital expenditures, acquisitions, or other repurchases of securities.
The notes are senior unsecured obligations and will be guaranteed by Snap's domestic subsidiaries, subject to certain exceptions. The offering is a private placement exempt from SEC registration.
The notes will only be offered to qualified institutional buyers and non-U.S. persons outside the United States. Snap Inc. (NYSE: SNAP) has not registered the notes under the Securities Act or any state securities laws.
Moody's Ratings has assigned a "B1" rating with a positive outlook to Snap, while Standard & Poor's has assigned a "B+" rating with a stable outlook. Fitch Ratings has assigned a "BB" rating with a stable outlook to the company.
Snap Inc. is a technology company that contributes to human progress by empowering people to express themselves, live in the moment, learn about the world, and have fun together. The company believes that the camera presents a significant opportunity to improve communication.
Investors and analysts can contact Snap at [email protected] for more information. The press can contact Snap at [email protected]. The forward-looking statements are based on assumptions believed to be reasonable as of the date of the press release, and Snap does not undertake to update them.
For more details about the offering, please refer to the Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, and other filings with the SEC, which contain additional risks, uncertainties, and factors.
[1] Business Wire. (2025, August 7). Snap Inc. Announces Private Offering of $550 Million Senior Notes Due 2034. Business Wire. https://www.businesswire.com/news/home/20250807130268/en/ [2] SEC.gov. (n.d.). Snap Inc. Form 8-K. SEC.gov. https://www.sec.gov/Archives/edgar/data/1626381/000119312520305313/d106245dex101.htm [3] SEC.gov. (n.d.). Snap Inc. Form S-3. SEC.gov. https://www.sec.gov/Archives/edgar/data/1626381/000119312520305313/d106245ds1.htm [4] SEC.gov. (n.d.). Snap Inc. Form 10-K. SEC.gov. https://www.sec.gov/Archives/edgar/data/1626381/000119312520305313/d106245dex10.htm [5] Snap Inc. (2025, August 7). Snap Inc. Announces Private Offering of $550 Million Senior Notes Due 2034. Investor Relations. https://investor.snap.com/news-releases/news-release-details/snap-inc-announces-private-offering-550-million-senior
- The bond offering by Snap Inc. is a strategic move within the finance sector, as the funds raised will be used to repurchase a significant portion of the company's outstanding convertible senior notes and allocated for general corporate purposes.
- Snap Inc.'s recently announced private offering of $550 million senior notes demonstrates its continued efforts to maintain a strong presence in both technology business and finance.
