$ 1 billion of notes were sold in the US junk bonds by Twitter Inc to help fund a share buyback, reviving a new-issue market that had been dormant for over two weeks.

The sale of the unsecured debt, which is due in 2030, was spearheaded by JPMorgan Chase & Co. word on the street says that the bonds were priced at a five percent yield after earlier pricing conversions in the five percent area.

Twitter said that revenues will be utilized for general corporate objectives, which might include capital expenditures, investments, and working capital, in addition to share repurchases.

The San Francisco-based company raised $700 million in its high-yield debut in 2019, after receiving more than $ 6 billion in orders. According to Trace data, the deal was sold at a yield of just 3.875 percent, one of the lowest ever seen in the trash market, and is now trading at around 4.2 percent.

Since the firm announced a $ 4 billion stock purchase in connection with its quarterly earnings announcement on Feb. 10, Twitter shares have fallen more than 10 percent, while the tech-heavy Nasdaq 100 Index has dropped roughly five percent. The stock has dropped around 23 percent this year and ended at $ 32.76 this week.

The U.S. junk-bond new issue market has reopened as a result of Twitter's recent offering, as well as a sale disclosed Tuesday by protein drink company BellRing Brands.

Parag Agrawal, Twitter's newly installed CEO, has pledged to increase accountability, make faster decisions, and improve product execution. By the end of 2023, the company established aggressive growth goals, including growing annual revenue to $7.5 billion and reaching 315 million daily users.

The debt sale and share buyback by Twitter are a 'credit negative,' according to Moody's Investors Service, although there will be no immediate impact on the company's credit rating. The purchase ‘increases gross leverage above Moody's downgrading criteria of 3.5x’, according to the credit rating agency, but the company has plenty of cash on hand.

According to Twitter, the debt will be used in part to support possible acquisitions, but the company is not actively involved in any negotiations at the moment.