Jack Dorsey’s Block to raise $1.5B in senior notes offering
Fitch Ratings notes that Block has used convertible debt for external funding since its IPO and is well-positioned to exploit the growth in payments and consumer financial services.
Fintech firm Block — formerly Square — announced plans on May 6 to issue $1.5 billion in senior notes through a private placement to qualified institutional investors.
The company said in a statement that the terms of the notes, including interest rates and maturity dates, are subject to negotiation with the initial purchasers. Investors permitted to join the round include pension funds, banks, mutual funds, and high-net-worth individuals.
Block’s shares (NYSE: SQ) rose more than 4% following the announcement, trading at $72.40 at the time of writing.
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Author: Ana Paula Pereira
