Roblox sells $ 1 billion in junk bonds


Roblox plans to sell $ 1 billion worth of junk bonds in what has already been a popular year for high yield debt.

The product will be used to assist with “general business objectives” including capital expenditures, production and development, potential acquisitions and working capital.

The video game developer is the 85th first high yield borrower in 2021, as more tech companies – especially newly listed ones – will look to finance growth through debt, according to Bloomberg.

Roblox went public in March, reaching a Valuation of $ 45 billion the day of its debut on the public market.

  • Second quarter revenue was $ 454.1 million, an increase of 127% year-over-year.
  • Daily active users affected 43.2 million during the quarter, an increase of 29% compared to the same period in 2020.
  • Roblox announced a partnership with Sony Music Entertainment in July, bringing Sony artists into the Roblox metaverse.
  • In August, it acquired Guilded, a competitor to Discord.

Goldman Sachs, Morgan Stanley and JPMorgan Chase are lead the sale.

So far in 2021, Goldman Sachs has “made almost as many first high-yielding issues for technology companies as in the past four years combined,” Anne Russ, chief technology, media and leveraged finance at Goldman Sachs.

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