Quick take:
The company plans to use some of the proceeds from the new 5-year notes to service $955 million of debt due in 2026.
Investors in the new notes can redeem them at 80% of the price of any IPO if Telegram decides to go public before the notes mature.
The new convertible notes were priced with a coupon of 9%, 200 basis points more than the $2.35 billion bond issued in 2021, Bloomberg reported.
Telegram has raised a $1.7 billion convertible bond as part of the restructuring strategy of its existing debt. The messaging platform plans to utile the funds to repay its existing debt and extend the maturity of its debt.
According to the report by Bloomberg, some of the proceeds from the newly issued 5-year convertible notes will be used to service $955 million of debt due in 2026, with the transaction also raising $745 million for new funds. Investors in the new notes can redeem them at 80% of the price of any IPO if Telegram decides to go public before the notes mature.
The new notes were priced with a coupon of 9%, 200 basis points more than the $2.35 billion bond issued in 2021. The tender closed on May 28, with the settlement expected on June 5.
On Wednesday, reports emerged that Telegram was looking to raise up to $1.5 billion in a new convertible bond offering, backed by BlackRock and Citadel.
Telegram founder Pavel Durov also revealed via an X post that his company had partnered with Elon Musk’s xAI to integrate Grok into its platform. The one-year deal reportedly comprised a $300 million investment from xAI in cash and equity, plus 50% revenue share. This sparked a more than 20% spike in TON price, the native token of TON Network, the blockchain platform powering Telegram’s crypto mini apps and other Web3 activities.
However, Musk played down those reports later in the day claiming there was no such deal in place. TON price pulled back 10% before mounting a slight rebound in the morning hours on Thursday, ET.
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The post Telegram Secures $1.7B Convertible Bond to Restructure Existing Debt appeared first on NFTgators .
