PAR Technology plans $225 million convertible notes offering

PAR Technology Corporation (NYSE: PAR) announced plans to offer $225 million in convertible senior notes due 2031 through a private placement to qualified institutional buyers, according to a company statement.

The foodservice technology company will grant the initial purchaser an option to buy an additional $25 million in notes during a 13-day period starting from the first issuance date. The notes will be unsecured obligations with semiannual interest payments.

Upon conversion, PAR can settle the notes in cash, common stock shares, or a combination of both. The interest rate, conversion rate and other terms will be determined when the offering is priced based on market conditions and negotiations with the initial purchaser.

The notes cannot be redeemed by the company before March 20, 2029. Holders can convert the notes only under certain circumstances before that date, then at any time until maturity. After March 20, 2029, PAR can redeem all or part of the notes at 100% of principal plus accrued interest if its stock price reaches at least 130% of the conversion price for 20 trading days within any 30-day period.

PAR intends to use proceeds to repurchase portions of its existing 1.50% convertible senior notes due 2027, buy back common stock, and fund general corporate purposes. The company may also use funds for acquisitions or investments in complementary businesses.

Concurrent with the offering pricing, PAR expects to repurchase up to $40 million of common stock from note purchasers in private transactions. Additionally, the company's financial advisor J. Wood Capital Advisors plans to purchase up to $10 million in common stock, potentially at a discount to the closing price.

The notes will only be offered to qualified institutional buyers under Rule 144A and have not been registered under federal securities laws.

You May Also Be Interested In

• Pembina joins proposed 1M bbl/day Alberta-to-coast pipeline plan
• ​Trump said he was unaware of his earnings from crypto
• Cosmos Health buyback reaches 3.42M shares at ~$650,000 spent