Telegram Secures $1.7 Billion Through Convertible Bonds for Debt Refinancing
Telegram raised $1.7 billion through five-year convertible bonds to refinance liabilities and extend repayment deadlines.
- $955 million will be used to buy back bonds maturing in 2026
- $745 million will support operations and growth investments
- Investors can convert bonds into equity if Telegram goes public before maturity, redeeming at 80% of the IPO price
- Tender offer closed on May 28; settlement expected on June 5
- Interest from BlackRock, Mubadala, and Citadel
- New notes have a 9% coupon, two percentage points higher than the previous bond issued in 2021
- Telegram generated over $1 billion in revenue last year and holds over $500 million in cash reserves, excluding crypto