Square prices $1 billion convertible bond offering

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Square Inc. priced a $1 billion convertible bond offering on Tuesday and entered hedging agreements that aim to reduce dilution on conversion. The payment systems company said it is offering $500 million of senior notes due 2026 and $500 million of notes that mature in 2027. The 2026 notes will not bear interest and the principal will not accrete. The 2027 notes will bear interest at a rate of 0.25% per year. The initial conversion rate for each series is 3.3430 shares of Class A common stock per $1,000 principal amount, or about $299.13 per share. Shares were down 0.6% but have gained 124% in the year to date, while the S&P 500 has gained 10%.
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