Snap Announces Pricing of Upsized Offering of $1.5 Billion of Senior Notes Due 2033

Snap Announces Pricing of Upsized Offering of $1.5 Billion of Senior Notes Due 2033

Investors and Analysts:
ir@snap.com

Snap Inc. (NYSE: SNAP) announced today the pricing of $1.5 billion aggregate principal amount of 6.875% senior notes due 2033, or the notes, in a private offering that is exempt from the registration requirements of the Securities Act of 1933, as amended, or the Securities Act. The sale of the notes is expected to close on February 14, 2025, subject to customary closing conditions.

The notes will be senior unsecured obligations of Snap and will be fully and unconditionally guaranteed in the future, jointly and severally, by each of Snap’s domestic subsidiaries that guarantees certain of its other indebtedness, if any, subject to certain exceptions. The notes will bear interest at a rate of 6.875% per annum, payable semiannually in arrears on March 1 and September 1 of each year, beginning on September 1, 2025. The notes will mature on March 1, 2033 unless earlier repurchased or redeemed.

Moody’s Ratings has assigned a “B1” rating with a positive outlook to Snap and the offering of the notes. Fitch Ratings has assigned a “BB” rating with a stable outlook to Snap and the offering of the notes. Standard & Poor’s has assigned a “B+” rating with a stable outlook to Snap and the offering of the notes.

Snap estimates that the net proceeds from the offering will be approximately $1,475.0 million, after deducting the initial purchasers’ discounts and commissions and estimated expenses payable by Snap. Snap intends to use the net proceeds from the offering to repurchase an aggregate principal amount of (i) $45.3 million of its outstanding convertible senior notes due 2026, or the 2026 notes, (ii) $797.4 million of its outstanding convertible senior notes due 2027, or the 2027 notes, and (iii) $800.0 million of its outstanding convertible senior notes due 2028, or the 2028 notes, for an aggregate repurchase price of $1,445.1 million. Snap intends to use the remaining net proceeds from the offering for general corporate purposes, including working capital, operating expenses, capital expenditures, acquisitions of complementary businesses, or other repurchases of Snap’s securities.

In addition, Snap expects that some or all of the holders of the 2026 notes, the 2027 notes, or the 2028 notes that it repurchases may purchase shares of Snap Class A common stock in open market transactions or enter into or unwind various derivatives with respect to Snap Class A common stock to unwind hedge positions that they have with respect to their investment in the 2026 notes, the 2027 notes, or the 2028 notes. These transactions, in turn, may place upward pressure on the trading price of Snap Class A common stock, causing Snap Class A common stock to trade at higher prices than would be the case in the absence of these purchases.

The notes have not been and will not be registered under the Securities Act or any state securities laws. The notes will only be offered or sold to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A promulgated under the Securities Act, and outside the United States to non-U.S. persons pursuant to Regulation S under the Securities Act.

This press release is not an offer to sell and is not soliciting an offer to buy any securities, nor will it constitute an offer, solicitation, or sale of the securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction. Any offers of the notes will be made only by means of a private offering memorandum.

About Snap Inc.

Snap Inc. is a technology company. We believe the camera presents the greatest opportunity to improve the way people live and communicate. We contribute to human progress by empowering people to express themselves, live in the moment, learn about the world, and have fun together.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended, about Snap and Snap’s industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release, including statements regarding the expected closing of the offering of the notes, the anticipated use of the net proceeds from the offering of the notes, the expected repurchases of the 2026 notes, the 2027 notes, and the 2028 notes, and effects thereof, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “going to,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would” or the negative of these words or other similar terms or expressions. Snap cautions you that the foregoing may not include all of the forward-looking statements made in this press release.

You should not rely on forward-looking statements as predictions of future events. Snap has based the forward-looking statements contained in this press release primarily on its current expectations and projections about future events and trends, including its financial outlook, macroeconomic uncertainty, and geo-political conflicts, that it believes may continue to affect Snap’s business, financial condition, results of operations, and prospects. These forward-looking statements are subject to risks and uncertainties related to: Snap’s financial performance; the ability to attain and sustain profitability; the ability to generate and sustain positive cash flow; the ability to attract and retain users, partners, and advertisers; competition and new market entrants; managing Snap’s growth and future expenses; compliance with new laws, regulations, and executive actions; the ability to maintain, protect, and enhance Snap’s intellectual property; the ability to succeed in existing and new market segments; the ability to attract and retain qualified team members and key personnel; the ability to repay or refinance outstanding debt, or to access additional financing; future acquisitions, divestitures, or investments; and the potential adverse impact of climate change, natural disasters, health epidemics, macroeconomic conditions, and war or other armed conflict, as well as risks, uncertainties, and other factors described in “Risk Factors” in Snap’s Annual Report on Form 10-K for the year ended December 31, 2024 and Snap’s other filings with the SEC, which are available on the SEC’s website at www.sec.gov. In addition, any forward-looking statements contained in this press release are based on assumptions that Snap believes to be reasonable as of this date. Snap undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.