Twitter’s previous forays into debt markets have primarily been via convertible notes. — AFP
As it prepares its debut in the junk-bond market, Twitter Inc is employing a strategy that looks downright quaint for a high-flying technology firm: making money.
The social media company, which posted US$856mil (RM3.5bil) of free cash flow last year, can expect to be rewarded for its prudence. It garnered credit ratings in the top tier of high-yield and is marketing its US$600mil (RM2.5bil) deal at a yield of around 4.5%, more than a percentage point lower than average for speculative-grade debt.
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