How Will Twitter (TWTR) Stock React to The Company's Increased Bond Offering?

NEW YORK (TheStreet) -- Shares of Twitter  (TWTR) were down 4.51% to $49.76 in afternoon trading Monday after the social media company increased the size of its bond offering to $1.8 billion from $1.3 billion due to increased demand.

The offering is Twitter's first major fundraiser since its IPO in November 2013.

The company announced the pricing of $900 million in convertible senior notes due in 2019 and $900 million of convertible senior notes due in 2021 in a regulatory filing Friday. The 2019 notes will accrue interest at a rate of 0.25% per year, while the 2021 notes will gain interest at a rate of 1% per year. The interest will be twice a year on March 15 and September 15.

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The offering contains a 30-day option for initial purchasers to buy up to an additional $100 million of the 2019 and 2021 notes. Twitter expects the offering to close on Wednesday and to raise $1.77 billion in net proceeds.

More than 31.8 million shares had changed hands as of 2:44 p.m., compared to the average volume of 27,450,000.

TWTR Chart TWTR data by YCharts

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