Twitter Inc (NYSE: TWTR) plans to offer $1.25 billion convertible senior notes due in 2026 in a private institutional offering.

• The offering proceeds would be partly utilized to pay towards the convertible note hedge, warrant transactions. The remaining proceeds would be used towards payment upon conversion or at maturity of its 1% Convertible Senior Notes due 2021 and general corporate purposes, including capital expenditures, working capital, and potential acquisitions.
• The initial purchasers are estimated to receive a 13-day option to procure additional notes of $187.5 million.
• Twitter plans to enter into privately negotiated convertible note hedge and warrant transactions with one or more of the initial purchasers.
• In the last quarter earnings, the company mentioned plans to grow its headcount by over 20% in 2021, especially in engineering, product, design, and research. Its total costs and expenses are expected to grow by 25% or more. The company investments also include the final buildout of a new data center in 2021 to support audience and revenue growth.
• TWTR stock has climbed over 133% in the last year.
• Price action: TWTR stock was up 1.14% at $77.94 in the pre-market session on the last check Monday.