Pitney Bowes plans $200 million convertible notes offering

Pitney Bowes Inc. (NYSE: PBI) announced it intends to offer $200 million in convertible senior notes due 2030 through a private placement, according to a company statement. The initial purchasers will have an option to buy an additional $30 million of notes within 13 days of issuance.

The convertible notes will mature on August 15, 2030, and will be guaranteed by the company's wholly owned U.S. subsidiaries that guarantee existing debt obligations exceeding $150 million. The notes will be convertible under certain conditions before May 15, 2030, and at any time thereafter until maturity.

Pitney Bowes plans to use proceeds to enter into capped call transactions designed to reduce potential dilution from note conversions. The company expects to spend up to $75 million to repurchase shares concurrently with the offering pricing through privately negotiated transactions with initial purchasers.

Remaining proceeds will fund general corporate purposes and strategic investments, including business reinvestment, debt repayment or refinancing, and initiatives to reduce leverage or borrowing costs.

The company may redeem the notes for cash starting August 21, 2028, if its stock trades at least 130% of the conversion price for 20 trading days within any 30-day period. Upon conversion, Pitney Bowes will pay cash up to the principal amount and deliver shares for any excess conversion value.

The offering targets qualified institutional buyers under Rule 144A of the Securities Act of 1933. The notes and related guarantees have not been registered under federal securities laws.

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