Stamford-based Pitney Bowes has raised $230 million through a convertible debt offering while also repurchasing almost $62 million of its common shares and entering into capped call transactions. Pitney Bowes said it sold $230 million of 1.5% convertible senior notes due 2030 in a private placement, including $30 million in convertible notes sold to initial […]
Stamford-based Pitney Bowes has raised $230 million through a convertible debt offering while also repurchasing almost $62 million of its common shares and entering into capped call transactions.
Pitney Bowes said it sold $230 million of 1.5% convertible senior notes due 2030 in a private placement, including $30 million in convertible notes sold to initial buyers who were given the option to buy them. The company received net proceeds from the offering of about $221 million, after deducting the initial purchasers’ discounts and commissions and estimated offering expenses.
The company rebought the shares at $11.18 per share — the closing price on Aug. 5 — through privately negotiated transactions.
Capped call transactions limit the price at which shareholders can sell their shares back to the company. Their cap price is $22.36 per share, a 100% premium over the Aug. 5 sale price.
Pitney Bowes plans to use the rest of the proceeds for general corporate purposes and other strategic investments aligned with the company’s capital strategy.
“Our ability to complete this capital raise on favorable terms demonstrates that Pitney Bowes is a revitalized organization with a significant runway for continued value creation,” CEO Kurt Wolf said. “Two years ago, Pitney Bowes had a stock price near all-time lows, extremely burdensome debt, and an unsustainable operating model. Today, we’re a hard-charging, highly disciplined enterprise with two market-leading businesses that are producing consistently strong earnings and cash flow.”
