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OAKLAND, Calif. - Block, Inc. (NYSE:XYZ), a prominent financial services player with a market capitalization of $46.8 billion, has priced $2.2 billion in senior notes, the financial technology company announced Wednesday in a press release statement. According to InvestingPro data, Block maintains a healthy financial position with liquid assets exceeding short-term obligations.
The offering consists of $1.2 billion in 5.625% senior notes due in 2030 and $1.0 billion in 6.000% senior notes due in 2033. Block increased the aggregate principal amount from the previously announced $1.5 billion offering size.
The notes will be sold in a private placement to qualified institutional buyers under Rule 144A of the Securities Act of 1933 and to non-U.S. persons under Regulation S. The transaction is expected to close on August 18, 2025, subject to customary closing conditions.
Interest on both series of notes will be paid semi-annually beginning February 15, 2026. The 2030 notes will mature on August 15, 2030, while the 2033 notes will mature on August 15, 2033.
Noteholders may require Block to repurchase the notes at 101% of principal plus accrued interest upon certain change of control events. The company maintains early redemption rights under specified conditions.
Block plans to use the net proceeds for general corporate purposes, which may include repayment of existing debt, potential acquisitions, capital expenditures, investments, and working capital.
The notes have not been registered under the Securities Act and may not be offered or sold in the United States except pursuant to applicable exemptions from registration requirements.
In other recent news, Block Inc. announced its plans to offer $1.5 billion in senior notes through a private placement aimed at qualified institutional buyers and non-U.S. persons. The debt issuance, consisting of two series of notes, has been rated ’BB+’ by S&P Global Ratings and ’BBB-’ by Fitch Ratings. Proceeds from this offering are intended for general corporate purposes, including debt repayment and potential acquisitions. In the realm of earnings, Block’s recent quarterly results surpassed market expectations, despite a revenue miss attributed to Bitcoin. As a result, Macquarie raised its price target for Block to $67, maintaining a Neutral rating. Bernstein SocGen Group also increased its price target to $95, highlighting strong growth and an updated forecast of 19% Gross Profit growth by year-end. Additionally, Argus raised its price target to $84, citing Block’s improved financial guidance for 2025, which includes a 14% gross profit growth projection and an adjusted operating income forecast of $2.0 billion. These developments reflect a series of strategic financial maneuvers and positive analyst outlooks for Block Inc.
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