Global Payments Prices $1.75 Billion Convertible Notes Offering
Global Payments Announces Pricing of $1.75B Convertible Senior Notes Offering
Global Payments Inc. has announced the pricing of its $1.75 billion convertible senior notes offering, which is expected to close on February 23, 2024. The offering includes an option for initial purchasers to buy an additional $250 million in notes, subject to customary conditions.
Details of the Convertible Notes
The convertible notes will accrue interest at a rate of 1.50% per annum, payable semi-annually, and will mature on March 1, 2031. The initial conversion rate is set at 6.3710 shares of common stock per $1,000 principal amount, equivalent to an initial conversion price of approximately $156.96 per share.
Terms and Conditions
Global Payments has set a premium of about 20% over the closing stock price for the initial conversion price of the notes. The company may not redeem the notes before March 6, 2028, but may do so thereafter under certain conditions at a redemption price equal to the principal amount plus accrued interest.
Utilization of Proceeds
The net proceeds from the offering are estimated to be approximately $1.72 billion but could reach $1.96 billion if the additional notes option is exercised fully. These funds will be used for various corporate purposes, including repaying borrowings, repurchasing common stock, and covering the cost of capped call transactions.
Capped Call Transactions
Global Payments has entered into capped call transactions to potentially reduce dilution to its common stock upon conversion of the notes or to offset cash payments required upon conversion, subject to a cap. The initial cap price is set at a 75% premium over the stock’s closing price on February 20, 2024.
Important Note for Investors
The convertible notes and any common stock issued upon conversion have not been registered under the Securities Act of 1933 and will be offered only to qualified institutional buyers.
Disclaimer
This news article is based on a press release statement from Global Payments Inc. It presents information in a simplified manner to ensure easy comprehension.
This article was generated and reviewed to ensure a natural language tone without complex sentences or jargon.
