Euronet Worldwide, Inc. has announced its plans to offer $850 million in aggregate principal amount of convertible senior notes due 2030 in a private placement. The company also intends to grant the initial purchasers of the notes an option to purchase up to an additional $150 million in aggregate principal amount of the notes.
The notes will be general unsecured obligations of Euronet and will accrue interest payable semiannually in arrears. The interest rate, initial conversion rate, and other terms of the notes will be determined at the time of pricing of the offering.
Euronet expects to use the net proceeds from the offering to repay borrowings outstanding under its existing unsecured revolving credit facility. If the initial purchasers exercise their option to purchase additional notes, Euronet expects to use the net proceeds from the sale of the additional notes to repay additional indebtedness under its revolving credit facility or for other general corporate purposes.
In connection with the offering, Euronet expects to use cash on hand to pay the cost of the capped call transactions and to repurchase up to $175 million of its common stock concurrently with the pricing of the offering in privately negotiated transactions. Additionally, the company expects to enter into privately negotiated capped call transactions with one or more of the initial purchasers or affiliates thereof and/or other financial institutions.
Euronet also plans to repurchase shares of its common stock from purchasers of notes in privately negotiated transactions with or through one of the initial purchasers or its affiliate concurrently with the pricing of the offering.
The notes and any shares of Euronet’s common stock issuable upon conversion of the notes have not been and will not be registered under the securities act or any state securities laws.
Euronet Worldwide, Inc. is a global leader in payments processing and cross-border transactions, operating in 199 countries and territories. As a result of these announcements, the company's shares have moved 2.16% on the market, and are now trading at a price of $97.01. For more information, read the company's full 8-K submission here.
