Messaging app Telegram raised $1bn via a 5Y pre-IPO convertible bond issued at 100 with a yield of 7%. Investors have a IPO Redemption Option (Term of the Day, explained below) where they would be able to convert the bonds into equity on certain conditions. FT notes that the conversion can be done at a 10% discount to Telegram’s IPO price. Investors included Mubadala Investment Company and Abu Dhabi Catalyst Partners, which as per founder Pavel Durov invested $150mn. Last year, Telegram was fined $18.5mn by the SEC that led the company to return $1.2bn it had raised through an initial coin offering (ICO) in 2018. Telegram is an encrypted messaging app that has over 500mn active users and saw a flurry of new users come last year along with Signal as WhatsApp’s privacy policies changed.
Telgram’s newly issued 7% 2026s are off to a strong start, currently at 102.77, yielding 6.34%.
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