Snap Plans $700 Million Junk Offering to Buy Back Convertibles

Snap Inc. plans to offer $700 million of junk bonds to repurchase convertible debt, the social-media company said in a statement on Monday.

Snap intends to sell the new senior notes, which mature in 2033, in a private offering. Proceeds will be used to repurchase convertible notes that are due as soon as this year through 2028, with any remaining funds going toward general corporate purposes or repurchases of other securities.

The move comes as Snap’s stock is trading at roughly half the conversion price for existing notes that are coming due soon. Its shares closed at $10.92 on Friday, ...