Followers | 689 |
Posts | 143817 |
Boards Moderated | 35 |
Alias Born | 03/10/2004 |
Thursday, December 05, 2019 8:21:24 AM
By: MarketWatch | December 4, 2019
Social-media site Twitter Inc. has collected a lot of likes on its debut $600 million junk-bond deal in the past two days.
Yields on the nearly eight-year parcel of bullet bonds, due in 2027, have narrowed to an indicative level of 4% yield from an 4.5% area, according to one debt investor monitoring the transaction. When prospective yields fall on a bond offering, even before it’s priced, that signals robust demand from investors.
And in this case, investors have shown a keen interest in backing Twitter’s popular platform, even though its new debt offering includes surprising few details on what the funding will be used for.
S&P Ratings, which gave the bonds BB+ ratings, only said the bonds would be used for general corporate purposes.
But the credit-rating agency added that Twitter’s “ample financial flexibility” via an $5.8 billion cash balance and modest debt burden were strengths of the company.
The debt investor said the lack of detail was unusual for a high-yield, or “junk” bond issuer. And on Twitter’s bond call this week with potential investors, he said top leadership indicated they didn’t want to be constrained in terms of spelling out their leverage or credit-rating targets.
“As a bond investor, you don’t want to hear that,” he said,
In October, Twitter TWTR, +0.10% reported third-quarter earnings of $824 million, up from $758 million a year prior, but fell short of the $874 million that analysts surveyed by FactSet had been expecting, while blaming advertizing bugs for the miss.
Read Full Story »»»
DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Your Due Dilegence is a must!
• DiscoverGold
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM