The capitalization of the U.S. company, which owns the app Snapchat, has been plummeting lately
MarketWatch reported that Snap Inc., owner of the app Snapchat, has shared plans to float $1.25 billion in convertible bonds due in 2028, with an option to place up to an additional $200 million.
It is noted that these bonds at the request of the holders can be converted into shares of the company. The issue of bonds will be sold in the frames of private offering procedure.
Snap shares fell 6.7% on this news. The company's capitalization has plummeted 35% in the past three months, even though it jumped 59% on Friday after posting strong quarterly earnings.
