BUZZ-Twitter dips after pricing $1.25bln 0% coupon convertible deal

CBs will not bear interest

  

** Twitter Inc shares down ~1% early Tues as co raises $1.25 bln of capital as planned

** Social media firm prices 5-yr convertible bonds (CBs) offering.

** CBs will not bear interest; conversion price of $130.03 represents 67.5% premium to stock's Mon close

** Co plans to use ~$45.5 mln of net offering proceeds to pay cost of hedge transactions, remainder to pay any amounts due upon conversion or at maturity of its 1.00% convertible notes due 2021 and for general corporate purposes

** Shares hit record high $80.75 on Thurs after co said it expects annual rev to double to at least $7.5 bln in 2023.

** With move on Tues, TWTR shares up ~41% YTD and have ~$62 bln market cap, per Refinitiv data

** TWTR's capital raise comes amid a parade of convertible deals this year that have featured 0% coupons and hefty conversion premiums

** Burger chain Shake Shack early Tues priced $225 mln 7-yr CB with 0% coupon, 45% conversion premium.

** Last month, file sharing service co Dropbox Inc , business intelligence software firm MicroStrategy and at-home fitness co Peloton Interactive all priced 0% CBs.

(Lance Tupper is a Reuters market analyst. The views expressed are his own) ((lance.tupper.tr.com@reuters.net lance.tupper@tr.com 1-332-219-1430))

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