By Abigail W. Adams
Portland, Me., March 14 – Euronet Worldwide Inc. priced $500 million of 30-year convertible notes after the market close on Wednesday at par with a coupon of 0.75% and an initial conversion premium of 36%, according to a company news release.
Pricing came richer than initial price talk for a coupon of 1% to 1.5% and an initial conversion premium of 30% to 35%, sources said.
Wells Fargo Securities LLC and BofA Merrill Lynch are the joint bookrunners for the Rule 144A offering, which carries a greenshoe of $25 million.
The notes are contingently convertible subject to a 130% threshold.
The notes are non-callable for 3.5 years, callable subject to a 130% hurdle for 2.5 years and are then freely callable.
The notes are putable in 2025, 2029, 2034, 2039 and 2044.
They will be settled in cash, shares or a combination of both at the company’s option with the intention to settle par in cash.
Holders will receive contingent interest payments in addition to regular interest payments for certain periods beginning March 15, 2025 if the trading price on the notes exceeds a certain threshold, according to the news release.
There is dividend and takeover protection.
Net proceeds are expected to be $487.8 million, or $512.2 million if the greenshoe is exercised in full.
Proceeds will be used to repurchase $100 million of the company’s common stock, to redeem its outstanding 1.5% convertible notes due 2044, to repay borrowings under its credit facility and for general corporate purposes.
Approximately $94.5 million of the proceeds will be used to repurchase $49 million of the 1.5% notes with the company planning to redeem the full outstanding amount following the closing of the offering.
Euronet Worldwide is a Leawood, Kan.-based provider of electronic payment services.
| Issuer: | Euronet Worldwide Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $500 million
|
| Greenshoe: | $25 million
|
| Maturity: | March 15, 2049
|
| Bookrunners: | Wells Fargo Securities LLC and BofA Merrill Lynch
|
| Coupon: | 0.75%
|
| Price: | Par
|
| Yield: | 0.75%
|
| Conversion premium: | 36%
|
| Conversion price: | $188.73
|
| Conversion rate: | 5.2987
|
| Call options: | Non-callable for 3.5 years, callable subject to a 130% hurdle for 2.5 years and are then freely callable
|
| Put options: | Putable in 2025, 2029, 2034, 2039 and 2044
|
| Pricing date: | March 13
|
| Settlement date: | March 18
|
| Distribution: | Rule 144A
|
| Talk: | Coupon of 1% to 1.5% and an initial conversion premium of 30% to 35%
|
| Stock symbol: | Nasdaq: EEFT
|
| Stock price: | $138.77 at market close March 13
|
| Market capitalization: | $7.2 billion
|
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