Snap plans to raise $1.0bn via private debt offering

Snap announced on Tuesday that it plans on raising $1.0bn through a private debt sale to pay for operating and capital costs, sending its stock down by 2% in early trading.

The debt offering will take the form of convertible senior notes set to mature on August 1, 2026.

The proceeds from the sale will pay for "general corporate purposes, including working capital, operating expenses, capital expenditures," the company said in a statement on Tuesday.

However, the company added that it had no plans to purchase any businesses or services.

Last October, Snap CEO Evan Spiegel detailed the company’s goals to reach profitability in 2019 in a memo sent to employees.

The sale also came almost a fortnight after Snap had reported its second-quarter results which had soared past analysts’ estimates and saw the group's shares run up by nearly 12% in after-hours trading.

Snap's results included smaller losses than expected and impressive daily user numbers.