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Twilio Announces Terms of $1 Billion Public Note Offering

March 08, 2021

By Tracey E. Schelmetic - Virtual PBX Contributor

Twilio is a San Francisco-based cloud communications platform as a service company whose solution allows users to make and receive phone calls, send, and receive text messages, and perform other communication functions using the company’s web service APIs. The company’s goal, it has said, is to reinvent how companies engage with their customers and democratize communications channels like voice, text, chat, video, and email by virtualizing the world’s communications infrastructure through APIs that are simple enough for any developer to use, yet robust enough to power the world’s most demanding applications.


The company experienced stratospheric growth in 2020 and saw its stock price more than triple by the end of last year. Growth in 2021 has also been brisk. The company currently has 221,000 active customer accounts, up about 23 percent year-over-year.

Late last week, the company announced a $1 billion public note offering. The $1 billion in unsecured senior notes on offer from Twilio is equally split between 3.625 percent notes due 2029 and 3.875 percent notes due 2031. The offering is expected to close this week (on or around March 9). Twilio has stated that it plans to use the proceeds for general corporate purpose that could include acquisitions and strategic investments, debt repayment, capex, and working capital.

J.P. Morgan, Morgan Stanley and Bank of America Securities are acting as joint book-running managers for the proposed offering. Academy Securities, Cabrera Capital Markets and Siebert Williams Shank are acting as co-managers for the proposed offering.

Last week, Twilio announced partnering with Syniverse, an IP Packet Exchange provider, to boost innovations in the mobile communications space. As part of the deal, the company has agreed to invest up to $750 million cash for a minority stake in Syniverse.

In response to the news of the $1 billion public note offering, Twilio shares were up 1.1 percent pre-market.




Edited by Maurice Nagle


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