Twitter's Solid Cash Flow May Help Save On Interest Expense

Twitter (NYSE: TWTR) is in the process of raising $600 million in debt, which will be the tech company's first foray into the junk bond market with unsecured notes. All of the debt that Twitter has taken on thus far has been in the form of convertible notes, a different debt instrument that can be converted into stock based on certain conditions. With the company's financials improving -- it has consistently posted solid cash flow and GAAP profits over the past two years -- Twitter may be able to enjoy some interest savings compared to similar debt.

Here's what investors need to know about Twitter's paper.

Image source: Twitter.

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Source Fool.com