The electronic payments company aims to sell $850 million in principal amount initially, with the option for early buyers to acquire notes worth an additional $150 million.
Euronet Worldwide Inc. (EEFT) is preparing to raise $850 million through a private offering of convertible senior notes maturing in 2030.
The electronic payments company aims to sell $850 million in principal amount initially, with the option for early buyers to acquire an additional $150 million worth of notes during a 13-day window after issuance.
The notes will be unsecured and will accrue interest payable twice per year. Upon conversion, noteholders may receive cash, stock, or a mix of both, the terms of which will be finalized during the pricing of the deal. The company expects to use proceeds to pay down debt tied to its unsecured revolving credit facility. Any extra funds may also go toward general operations or further debt repayment.
Euronet Worldwide stock traded over 4% lower in Wednesday’s premarket. On Stocktwits, retail sentiment toward the stock remained in ‘bullish’ territory amid ‘normal’ message volume levels. Additionally, Euronet intends to repurchase up to $175 million of its own shares using cash on hand, in privately negotiated deals concurrent with the note pricing.
To mitigate potential equity dilution, the company also plans to engage in capped call transactions with financial counterparties. These transactions are expected to help reduce dilution or offset cash payments that might exceed the notes’ principal upon conversion.
The company enables money movement through services like money transfers, card processing, ATMs, POS systems, currency exchange, and branded payments. It operates in 199 countries and territories.
Euronet stock has lost over 7% year-to-date and over 5% in the last 12 months.
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