Global Payments to Offer $1.75 Billion in Convertible Senior Notes

By Tamara Parker • Tuesday, February 20 10:50 • Permanent Link

Global Payments Inc. (NYSE: GPN) has announced its intention to offer $1.75 billion in aggregate principal amount of convertible senior notes due 2031. The company also plans to grant the initial purchasers of the convertible notes an option to purchase up to an additional $250 million aggregate principal amount of convertible notes.

The convertible notes will be senior unsecured obligations of the company and will accrue interest payable semi-annually in arrears. They are expected to mature on March 1, 2031, unless earlier repurchased, redeemed, or converted. The interest rate, initial conversion rate, initial conversion price, and other terms of the convertible notes will be determined at the time of the pricing of the offering.

In connection with the pricing of the convertible notes, the company expects to enter into privately negotiated capped call transactions. It also plans to use a portion of the net proceeds from the offering to repurchase shares of its common stock from purchasers of the convertible notes in privately negotiated transactions. The remainder of the net proceeds will be allocated to repay borrowings and for general corporate purposes.

Jeff Sloan, CEO of Global Payments, stated, "We are pleased to announce this proposed offering of convertible senior notes, which will provide us with additional financial flexibility as we continue to execute on our technology-driven, customer-focused strategy."

In addition, Cameron Bready, President and COO of Global Payments, commented, "This offering reflects our commitment to maintaining a strong balance sheet and disciplined approach to capital allocation as we pursue our long-term growth objectives."

Shares of Global Payments have moved -1.5% following the announcement, and are currently trading at a price of $132.16.

Global Payments Inc. is a leading payments technology company with approximately 27,000 team members worldwide, operating across North America, Europe, Asia Pacific, and Latin America.

The company's full 8-K submission is available here.

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