News

Euronet aims to raise more than $500M through offering of convertible notes

March 15, 2019

Electronic payments provider Euronet Worldwide Inc. has announced the pricing of its private offering of $500 million in aggregate principal amount of 0.75 percent convertible senior notes to be sold to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. 

Euronet has also granted initial purchasers a 13-day option to purchase up to an additional $25 million in aggregate principal amount of the notes, a company press release said.

The offering of the notes is expected to close on March 18, subject to customary closing conditions. Wells Fargo Securities and BofA Merrill Lynch are acting as joint book-running managers in the offering.

The notes will be unsecured obligations of Euronet, and will bear interest at a rate of 0.75 percent per year, payable semiannually, beginning on Sept. 15, 2019. 

Euronet estimates that the net proceeds from the offering of the notes will be approximately $487.8 million (or approximately $512.2 million if initial purchasers exercise their option to purchase additional notes in full), after deducting the initial purchasers' discount and estimated offering expenses.

Euronet expects to use approximately $94.5 million of the net proceeds from the offering to fund the repurchase of $49 million aggregate principal amount of the company's outstanding 1.50 percent convertible senior notes due 2044 from a limited number of holders in privately negotiated transactions.  

Euronet expects to apply the remainder of the net proceeds for general corporate purposes, which may include redeeming existing Euronet convertible notes, repaying borrowings outstanding under the company's unsecured revolving credit facility, share repurchases or acquisitions. 

The notes will be subject to redemption for cash at Euronet's option on and after Sept. 20, 2022, subject to certain conditions.