Amdocs Limited Announces a Proposed Offering of Senior Notes

Rhea-AI Summary

Amdocs Limited (NASDAQ: DOX) has initiated an offering of senior notes, aiming to address general corporate purposes, including debt repayment. The offering is orchestrated by lead managers J.P. Morgan, Morgan Stanley, and RBC Capital Markets, with additional support from Citigroup, HSBC, and MUFG. This issuance is facilitated under an effective shelf registration statement with the SEC. The company serves over 350 service providers globally, employing 25,000 personnel across 85 countries.

Positive

• Capital raised from the senior notes can potentially strengthen Amdocs' balance sheet by reducing debt.
• The company maintains a diverse client base of over 350 service providers, indicating robust market demand.

Negative

• The specifics of the debt being repaid remain unclear, potentially raising concerns about financial stability.
• Market conditions may affect the success of the notes offering, posing risks to anticipated capital.

ST. LOUIS, June 17, 2020 (GLOBE NEWSWIRE) -- Amdocs Limited (NASDAQ: DOX) (“Amdocs”) today commenced an offering of senior notes (the “Notes”), subject to market and other conditions.  Amdocs intends to use the net proceeds from this offering for general corporate purposes, including the repayment of indebtedness.

J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and RBC Capital Markets, LLC are managing the offering as joint lead bookrunning managers, and additionally Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and MUFG Securities Americas Inc. are acting as bookrunners for the offering.  

The offering of the Notes is being made pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission (the “SEC”).  The offering will be made only by means of a prospectus supplement and accompanying prospectus. A copy of the prospectus and prospectus supplement relating to the Notes are available on the SEC’s website at http://www.sec.gov and may also be obtained from J.P. Morgan Securities LLC, c/o J.P. Morgan Securities LLC, Attention: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by telephone, at (866) 803-9204 or from Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014 or from RBC Capital Markets, LLC, 200 Vesey Street, New York, New York 10281, Attention: Transaction Management Group, or by calling toll-free at 1-866-375-6829.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Notes in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Amdocs

Amdocs Limited is a provider of software and services for more than 350 communications, Pay TV, entertainment and media industry service providers, and has 25,000 employees in 85 countries worldwide. Our cloud-native portfolio of digital solutions, platforms and services, which we develop, implement and manage, is designed to meet the business imperatives of our customers as they drive growth, transform and take their business to the cloud.

Cautionary Statement About Forward-Looking Statements

This news release contains “forward-looking statements” (within the meaning of the United States federal securities laws) and involve substantial risks and uncertainties. You can identify these forward-looking statements by words such as “expect,” “anticipate,” “believe,” “seek,” “estimate,” “project,” “forecast,” “continue,” “potential,” “should,” “would,” “could” and “may,” and other words that convey uncertainty of future events or outcome. Statements that we make in this news release that are not statements of historical fact also may be forward-looking statements. Forward-looking statements are not guarantees of future performance, and involve risks, uncertainties and assumptions that may cause our actual results to differ materially from the expectations that we describe in our forward-looking statements. There may be events in the future that we are not accurately able to predict, or over which we have no control. You should not place undue reliance on forward-looking statements. Although we may elect to update forward-looking statements in the future, we disclaim any obligation to do so, even if our assumptions and projections change, except where applicable law may otherwise require us to do so. Readers should not rely on those forward-looking statements as representing our views as of any date subsequent to the date of the filing of this news release.

Important factors that may affect these projections or expectations include, but are not limited to: changes in the overall economy; the duration and severity of the COVID-19 (coronavirus) pandemic, and its impact on the global economy; changes in competition in markets in which we operate; changes in the demand for our products and services; consolidation within the industries in which our customers operate; the loss of a significant customer; changes in the telecommunications regulatory environment; changes in technology that impact both the markets we serve and the types of products and services we offer; financial difficulties of our customers; losses of key personnel; difficulties in completing or integrating acquisitions; litigation and regulatory proceedings; and acts of war or terrorism. For a discussion of these important factors and other risks, please read the information set forth under the caption “Risk Factors” in our Annual Report on Form 20-F for the fiscal year ended September 30, 2019 and  in our Report on Form 6-K dated May 18, 2020, in each case, filed with the U.S. Securities and Exchange Commission.

Contacts:
Matthew Smith
Head of Investor Relations
Amdocs
Tel: +1 (314) 212-8328
E-mail: dox_info@amdocs.com

Linda Horiuchi
Amdocs Public Relations
Tel: +1 (646) 581-2568
E-mail: linda.horiuchi@amdocs.com

FAQ

What is Amdocs' recent offering of senior notes about?

Amdocs has commenced an offering of senior notes to raise capital for general corporate purposes, including the repayment of debt.

Who is managing the Amdocs senior notes offering?

The offering is managed by J.P. Morgan, Morgan Stanley, and RBC Capital Markets as joint lead bookrunning managers.

What are the intended uses of the proceeds from Amdocs' senior notes?

The net proceeds will be used for general corporate purposes, primarily for the repayment of indebtedness.

Where can I find more information about Amdocs' senior notes offering?

Additional details can be found in the prospectus and prospectus supplement available on the SEC's website.

What are the risks associated with Amdocs' senior notes offering?

Risks include potential market fluctuations affecting the offering's success and the clarity regarding the specific debt being repaid.