Snap Inc. (SNAP) announced Thursday that it plans to offer $750 million in convertible notes that would mature on May 1, 2025. The notes will be offered in a private placement to institutional buyers who will have the option to purchase an addition $112.5 million in notes. Snap expects to use the proceeds from this convertible sale for general corporate purchases, including operating expenses as well as capital expenditures, with the option to also use the funding for acquisitions or share buybacks, though the company currently has no plans for either. The announcement comes after Snap posted better-than-expected first-quarter results Tuesday that showed growing engagement with the service but also confirmed an advertising slowdown that's impacting the broader industry (http://www.marketwatch.com/story/snap-stock-heads-for-best-day-in-two-years-but-jaw-dropping-slowdown-is-warning-sign-for-facebook-and-google-2020-04-22). Snap shares are down about 3% in premarket trading after rising 37% in Wednesday's session to mark their largest single-day percentage gain in more than two years. The stock has lost 12% over the past three months as the S&P 500 has declined 16%.

-Emily Bary

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April 23, 2020 08:11 ET (12:11 GMT)

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