News

Euronet converts $8.1M of convertible acquisition debt

December 15, 2003

LEAWOOD, Kan. - Euronet Worldwide, Inc. (Nasdaq:EEFT) announced the redemption of convertible promissory notes for common stock associated with its February 2003 acquisition of e-pay, a UK-based electronic payments processor of mobile top-up services in the UK and Australia.

Last February, Euronet issued convertible notes related to the acquisition of e-pay in the aggregate principal amount of GBP 4.6 million (U.S. $8.1 million) based on current exchange rates, bearing interest at 7 percent, payable semi-annually and maturing February 2005. (See related story Euronet expands prepaid business with acquisition of UK processor)

The convertible notes include provisions that allow the holders, at their option, to convert the principal amount outstanding of the notes plus interest into common stock of Euronet at a price of $11.43 per share and that allow Euronet to redeem the notes for its common stock at that same price if the average closing market price of Euronet stock exceeds $15.72 per share for 30 consecutive trading days.

As of Dec. 10, 2003, the average market price per share of Euronet stock exceeded $15.72 for 30 previous trading days, and Euronet issued redemption notices in accordance with the notes to the effect that, on Dec. 26, it will issue 717,678 Euronet shares to the note holders in payment of the principal amount outstanding plus accrued but unpaid interest under the notes.

Accordingly, upon conversion, Euronet's debt will decrease by U.S. $8.1 million.

Moreover, with the redemption of the convertible notes, Euronet's annual interest expense will decrease by approximately U.S. $500,000, according to a news release.