Square (SQ -0.28%), the operator of those increasingly ubiquitous point-of-sale terminals in small retailers, is tapping the debt market for a big new round of financing. The company announced Monday that it is floating $2 billion in aggregate principal amount of senior notes.

Outside of revealing the total amount, and the fact that it will be issued in two phases, Square provided few details about the notes. It said that the interest rate, maturity date, terms of redemption, and other key features of the debt securities would be determined by negotiations between it and potential buyers.

Square point-of-sale terminal in use.

Image source: Square.

According to a report in Bloomberg, citing "people with knowledge of the matter," the two phases would consist of one issue of notes with five-year maturities, and one with a 10-year term. The article added that early talks on the flotation have targeted an interest rate in the low to mid-3% range for the former set of notes, and the high 3% to 4% range for the latter.

The financial services company was also vague when describing what it would do with the proceeds. It said only that these are to be spent on "general corporate purposes, which may include potential acquisitions and strategic transactions, capital expenditures, investments and working capital." It gave no indication as to which potential acquisition targets, if any, it is currently considering.

Investment banking giant Goldman Sachs is managing the notes' issue. The company refused to comment on the Bloomberg report.

A popular company in the financial services sector, Square -- likely attracted by near floor-level interest rates -- has taken on notably more debt in the recent past. At the end of last year, its long-term borrowings stood at just under $3 billion, nearly triple the level at the conclusion of 2019.