PAR Technology Plans $225M Convertible Note Offering and $40M Stock Repurchase
PAR Technology plans to offer $225M of convertible senior notes due 2031 with a $25M option, convertible into cash or shares at terms set at pricing. It will use proceeds to repurchase 2027 notes and up to $40M of stock, plus a $10M advisor purchase, potentially boosting the share price.
1. Offering and Structure
The company has launched a private offering of $225 million of convertible senior notes due March 20, 2031, with an option for initial purchasers to buy an additional $25 million. The notes will be unsecured obligations with interest payable semiannually.
2. Conversion Terms and Redemption
Upon conversion, the notes may settle in cash, shares, or both at conversion rates set at pricing day based on the last reported share price. The notes are nonredeemable until March 20, 2029, with optional redemption thereafter if stock trades above 130% of the conversion price for a designated period.
3. Use of Proceeds
Net proceeds will fund repurchases of its 1.50% convertible senior notes due 2027 and up to $40 million of common shares in privately negotiated transactions. Additionally, its financial advisor intends to purchase up to $10 million of shares concurrently with the offering.
4. Potential Market Impact
Repurchases and anticipated convertible arbitrage strategies by note and share purchasers may increase or stabilize the company’s stock price and influence trading levels of both the notes and common shares.