By Paul A. Harris
Portland, Ore., March 4 – Twilio Inc. priced $1 billion of senior notes (Ba3/BB) in two tranches on Thursday, according to market sources.
The deal included a $500 million tranche of eight-year notes that priced at par to yield 3 5/8%. The yield printed at the tight end of yield talk in the 3¾% area. Initial guidance was 4% to 4¼%.
The offering also included $500 million of 10-year notes that priced at par to yield 3 7/8%. The yield printed at the tight end of yield talk in the 4% area. Initial guidance had the 10-year notes coming 25 basis points behind the eight-year notes.
As of mid-morning Thursday, Twilio was playing to a big book, according to a bond trader, who said that the market heard orders across both tranches totaled more than $5 billion.
J.P. Morgan Securities LLC was at the left of a syndicate of bookrunners that also includes Morgan Stanley & Co. LLC, BofA Securities Inc., Academy Securities Inc., Cabrera Capital Markets LLC and Siebert Williams Shank & Co. LLC.
The San Francisco-based cloud communications platform plans to use the proceeds for general corporate purposes, which may include acquisitions, debt repayment, capital expenditures, working capital and share repurchases.
Issuer: | Twilio Inc.
|
Amount: | $1 billion
|
Securities: | Senior notes
|
Managers: | J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, BofA Securities Inc., Academy Securities Inc., Cabrera Capital Markets LLC and Siebert Williams Shank & Co. LLC
|
Trade date: | March 4
|
Settlement date: | March 9
|
Ratings: | Moody's: Ba3
|
| S&P: BB
|
Distribution: | SEC registered
|
Marketing: | Roadshow
|
|
Eight-year notes
|
Amount: | $500 million
|
Maturity: | March 15, 2029
|
Coupon: | 3 5/8%
|
Price: | Par
|
Yield: | 3 5/8%
|
Spread: | 234 bps
|
Call protection: | Three years
|
Price talk: | 3¾% area
|
|
10-year notes
|
Amount: | $500 million
|
Maturity: | March 15, 2031
|
Coupon: | 3 7/8%
|
Price: | Par
|
Yield: | 3 7/8%
|
Spread: | 234 bps
|
Call protection: | Five years
|
Price talk: | 4% area
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.