Par Technology Corporation has announced its plan to offer $100 million aggregate principal amount of convertible senior notes due 2030 in a private offering. The company also expects to grant the initial purchaser of the notes an option to purchase up to an additional $15 million aggregate principal amount of notes.
The notes will be general unsecured obligations of the company with interest payable semiannually. They will be convertible at the option of the holders at certain times and under certain circumstances. The notes will not be redeemable at the company’s option prior to January 20, 2028.
The company intends to use the net proceeds from the offering to repay in full the $90 million principal amount outstanding of the term loan under its credit agreement with Blue Owl Capital Corporation as well as accrued interest and prepayment premium. The remaining net proceeds from the offering will be used for general corporate purposes, and the company may also use a portion of the proceeds for acquisitions or investments.
It's important to note that the notes will only be offered to qualified institutional buyers and have not been registered under the securities act or the securities laws of any other jurisdiction.
This announcement is neither an offer to sell nor a solicitation of an offer to buy the notes or any shares of the company’s common stock issuable upon conversion of the notes. The market has reacted to these announcements by moving the company's shares 0.7% to a price of $71.8. Check out the company's full 8-K submission here.