By Rebecca Melvin
New York, Oct. 31 – Euronet Worldwide Inc. priced $350 million of 30-year convertible senior notes at par after the market close Thursday to yield 1.5% with an initial conversion premium of 35%, according to a news release.
Pricing of the Rule 144A deal came toward the rich end of coupon talk, which was 1.375% to 1.875%, and at the rich end of 30% to 35% premium talk.
The deal has a $52.5 million greenshoe and was sold via bookrunners BofA Merrill Lynch and Wells Fargo Securities LLC.
The notes are non-callable until April 5, 2018 and then are provisionally callable if shares exceed 130% of the conversion price.
Holders can put the bonds in October of 2020, 2024, 2029, 2034 and 2039.
Beginning on Oct. 1, 2020, holders will receive contingent interest for certain periods if the trading price of the notes exceeds a certain threshold.
Proceeds will be used together with cash on hand if necessary to fund the repurchase of $65 million shares of common stock. The share repurchases being made with proceeds of the deal are in addition to the company’s previously announced $100 million share repurchase program.
Proceeds will also be used to repay borrowings outstanding under the company’s revolving credit facility and for general corporate purposes.
Leawood, Kan.-based Euronet is an electronic payments provider.
| Issuer: | Euronet Worldwide Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $350 million
|
| Greenshoe: | $52.5 million
|
| Maturity: | Oct. 1, 2044
|
| Bookrunners: | BofA Merrill Lynch, Wells Fargo Securities LLC
|
| Coupon: | 1.5%
|
| Price: | Par
|
| Yield: | 1.5%
|
| Conversion premium: | 35%
|
| Conversion price: | $72.18 per share
|
| Conversion ratio: | 13.8534 shares
|
| Takeover protection: | Yes
|
| Dividend protection: | Yes
|
| Calls: | Non-callable until April 5, 2018, then provisionally callable at 130% price hurdle
|
| Puts: | In October of 2020, 2024, 2029, 2034, 2039
|
| Contingent interest: | Beginning Oct. 1, 2020, for certain periods if price exceeds certain thresholds
|
| Pricing date: | Oct. 30
|
| Settlement date: | Nov. 5
|
| Price talk: | 1.375%-1.875%, up 30%-35%
|
| Stock symbol: | Nasdaq: EEFT
|
| Stock price: | $53.47 at close Oct. 30
|
| Distribution: | Rule 144A
|
| Market capitalization: | $2.96 billion
|
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