Telegram Raises $1.7 Billion Convertible Bond for Debt Swap (1)

Telegram raised $1.7 billion from convertible bonds that it will use to retire existing debt and lengthen the maturity of its debt.

The fast-growing messaging platform will use some of the proceeds from the new five-year notes to tender for $955 million of debt due in 2026, according to data compiled by Bloomberg. The transaction also raised $745 million of new funds.

Investors in the new notes can redeem them at 80% of the price of any initial public offering if Telegram decides to go public before the notes mature, according to people familiar with the matter who asked ...