Euronet debt financing to fund acquisition spree

Euronet debt financing to fund acquisition spree

Electronic payments processor and ATM operator Euronet is selling $155 million of convertible debt - $30 million more than originally planned - and says it plans to use the net proceeds to finance acquisitions.

Euronet previously said it would sell $125 million in unsecured convertible debentures, due 2025, to institutional buyers. The debentures may not be redeemed by Euronet prior to October 2012.

The bonds carry a 3.5% coupon and are convertible into stock at about $40.48 per share, considerably higher than the stock's closing price on Wednesday of $29.44 on Nasdaq.

The vendor says it is in active discussions concerning a potential acquisitions of complementary businesses generating around $100 million in annual revenues and about $15 million in annual earnings before items. The company expects the aggregate purchase price would be approximately 15% of its total assets.

Euronet also reaffirmed its third-quarter earnings guidance of 24 cents a share, excluding one-time losses and gains, which is in line with analysts forecasts.

Comments: (0)

Trending