Euronet greenshoe exercised, lifting convertibles to $402.5 million

By Marisa Wong

Madison, Wis., Nov. 5 – The underwriters of Euronet Worldwide Inc.’s recent offering of convertible senior notes exercised their $52.5 million over-allotment option in full on Friday, bringing the total size of the issue to $402.5 million. The company completed the issuance on Wednesday, according to an 8-K filing with the Securities and Exchange Commission.

After the market close on Oct. 30 the company priced $350 million of the 30-year convertible notes at par to yield 1.5% with an initial conversion premium of 35%, according to a prior 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, as previously reported.

The deal had a 13-day 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.

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