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CSG Systems buys debt, says it's comfortable with current debt levels
By Lisa Kerner
Charlotte, N.C., March 23 - CSG Systems International, Inc.'s repurchase of $120 million debt from a single bondholder was an "opportunistic opportunity" for the company, Liz Bauer, vice president of investor relations, told Prospect News.
Quantum Partners Ltd. sold $119,896,000 principal amount of CSG's outstanding 2.5% senior subordinated convertible contingent debt securities (Codes) to the company for $125,799,212.78 on Monday, according to a form 8-K filed with the Securities and Exchange Commission.
The purchase price consisted of $119,896,000 of principal, a premium of $5,095,580 and $807,632.78 of accrued interest up to but excluding the settlement date.
According to Bauer, CSG was able to take advantage of the opportunity because the company generates strong cash flows, ended 2009 with approximately $200 million in cash and recently completed a successful convertibles offering for $150 million of debt securities.
Bauer explained that the company expects the $170 million of its Codes to be put or called in June 2011 and basically termed out the old convertibles with the recent convertibles debt offering.
CSG, with its strong cash generation, is comfortable with its debt levels, Bauer said.
On Monday, CSG announced it would repurchase approximately $120 million principal amount of its Codes for approximately $125 million using general corporate funds, including the net proceeds from the company's March 1 issue of $150 million 3% senior subordinated convertible notes due 2017.
Based in Englewood, Colo., CSG provides software- and services-based solutions for the management of customer interactions.
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