S&P: Twitter convertibles BB-

Standard & Poor’s said it assigned an unsolicited BB- corporate credit rating to Twitter Inc.

The agency also said it assigned an unsolicited BB- rating and unsolicited 3 recovery rating to the company’s $1.8 billion convertible notes, which comprise $900 million 0.25% convertible notes due 2019 and $900 million 1% convertible notes due 2021.

The 3 recovery rating indicates 50% to 70% expected default recovery.

The outlook is stable.

Twitter will use proceeds from debt issuance for general corporate purposes, including acquisitions and operating needs, S&P said.

The ratings incorporate an assumption of healthy growth in monthly active users and revenues, the possibility of positive discretionary cash flow in 2016 and ongoing minimal debt leverage, the agency said.

The company is investing very aggressively in growth. Depending on the level of business reinvestment, Twitter may not generate positive discretionary cash flow until 2016, S&P said.

© 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.