China’s Weibo to use funds from $800 million of notes for development

By Devika Patel

Knoxville, Tenn., Aug. 19 – Weibo Corp. plans to use the proceeds from last quarter’s $800 million sale of 3˝% notes due 2024 to fund the company’s development.

“I’d like to add a brief note on the $800 million senior note offering our company completed in early July,” chief financial officer and vice president of finance Fei Cao said on the company’s second quarter ended June 30 earnings conference call on Monday.

“The notes bear an interest rate of 3.5% and are due in 2024.

“We have received a total of approximately $793 million in net proceeds.

“We plan to use the proceeds from the offering for general corporate purposes to support development of the company,” she said.

Cash and cash equivalents were $961.34 million as of June 30, 2019, compared to $1,234,596,000 as of Dec. 31, 2018.

On June 26, Weibo priced $800 million of 3˝% five-year notes (Baa1/BBB) at par for a yield spread of 172.5 basis points over Treasuries.

Goldman Sachs (Asia) LLC was the bookrunner of the notes that are registered with the Securities and Exchange Commission.

The notes are callable for a make whole amount equal to the greater of 100% and a discount rate of Treasuries plus 30 bps.

The social media company is based in Beijing.

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