Shift4 Payments Announces Senior Notes Offering
Shift4 Payments, Inc. (NYSE: FOUR), a leader in integrated payments and commerce technology, has announced that its subsidiaries are proposing to offer $1,100.0 million aggregate principal amount of senior notes in a private offering. The notes will be guaranteed jointly and severally on a senior unsecured basis by certain of Shift4's subsidiaries.
The company intends to use the net proceeds for general corporate purposes, including working capital, acquisitions, debt retirement, common stock repurchases, and other business opportunities. Shift4 expects to use some of the proceeds to repay outstanding borrowings under its $690.0 million of 0.00% Convertible Senior Notes due 2025 and/or $450.0 million of 4.625% Senior Notes due 2026.
The notes will not be registered under the Securities Act and will only be offered to qualified institutional buyers and certain persons in offshore transactions.
Shift4 Payments, Inc. (NYSE: FOUR), leader nella tecnologia dei pagamenti integrati e nel commercio, ha annunciato che le sue sussidiarie propongono di offrire un importo principale aggregato di 1.100,0 milioni di dollari di note senior in un'offerta privata. Le note saranno garantite congiuntamente e severamente su base non garantita da alcune delle sussidiarie di Shift4.
L'azienda intende utilizzare il capitale netto per scopi aziendali generali, inclusi capitale di lavoro, acquisizioni, estinzione di debiti, riacquisto di azioni ordinarie e altre opportunità di business. Shift4 si aspetta di utilizzare parte del ricavato per rimborsare i prestiti in essere sotto le proprie note senior convertibili del valore di 690,0 milioni di dollari con scadenza nel 2025 e/o le note senior del valore di 450,0 milioni di dollari con un tasso del 4,625% con scadenza nel 2026.
Le note non saranno registrate ai sensi del Securities Act e saranno offerte solo a compratori istituzionali qualificati e a determinate persone in transazioni offshore.
Shift4 Payments, Inc. (NYSE: FOUR), un líder en tecnología de pagos integrados y comercio, ha anunciado que sus subsidiarias proponen ofrecer un monto principal agregado de $1,100.0 millones de notas senior en una oferta privada. Las notas serán garantizadas de manera conjunta y solidaria sobre una base no garantizada por ciertas subsidiarias de Shift4.
La compañía tiene la intención de utilizar los ingresos netos para fines corporativos generales, incluyendo capital de trabajo, adquisiciones, amortización de deudas, recompra de acciones comunes y otras oportunidades de negocio. Shift4 espera usar parte de los ingresos para pagar los préstamos pendientes bajo sus $690.0 millones en Notas Senior Convertibles al 0.00% a vencer en 2025 y/o $450.0 millones en Notas Senior al 4.625% a vencer en 2026.
Las notas no estarán registradas bajo la Ley de Valores y solo se ofrecerán a compradores institucionales calificados y a ciertas personas en transacciones en el extranjero.
Shift4 Payments, Inc. (NYSE: FOUR)는 통합 결제 및 상거래 기술의 선두주자로서 자회사가 11억 달러의 총 원금 규모의 채권을 사모 방식으로 제공할 것을 제안했다고 발표했습니다. 이 채권은 Shift4의 일부 자회사에 의해 공동으로 그리고 개별적으로 비보장된 방식으로 보증됩니다.
회사는 일반적인 회사 목적을 위해 순이익을 사용할 계획으로, 여기에는 운영 자본, 인수, 부채 상환, 보통주 매입 및 기타 비즈니스 기회가 포함됩니다. Shift4는 2025년 만기 예정인 6억 9천만 달러의 0.00% 전환선순위채 및/또는 2026년 만기인 4억 5천만 달러의 4.625% 선순위채의 상환에 일부 수익을 사용할 것으로 예상하고 있습니다.
이 채권은 증권법에 따라 등록되지 않으며, 자격을 갖춘 기관 구매자 및 특정 인물에게만 해양 거래로 제공됩니다.
Shift4 Payments, Inc. (NYSE: FOUR), un leader dans la technologie des paiements intégrés et du commerce, a annoncé que ses filiales proposent d'offrir un montant principal agrégé de 1 100,0 millions de dollars sous forme de billets senior dans le cadre d'une offre privée. Les billets seront garantis conjointement et solidairement sur une base non garantie par certaines des filiales de Shift4.
La société prévoit d'utiliser le produit net pour des purposes d'entreprise générales, y compris le fonds de roulement, les acquisitions, le remboursement de dettes, les rachats d'actions ordinaires et d'autres opportunités commerciales. Shift4 s'attend à utiliser une partie des produits pour rembourser les emprunts en cours sous ses 690,0 millions de dollars de billets senior convertibles à 0,00% arrivant à échéance en 2025 et/ou ses 450,0 millions de dollars de billets senior à 4,625% arrivant à échéance en 2026.
Les billets ne seront pas enregistrés en vertu de la loi sur les valeurs mobilières et ne seront offerts qu'à des acheteurs institutionnels qualifiés et à certaines personnes dans le cadre de transactions offshore.
Shift4 Payments, Inc. (NYSE: FOUR), ein führendes Unternehmen im Bereich integrierte Zahlungs- und Handelstechnologie, hat bekannt gegeben, dass seine Tochtergesellschaften vorschlagen, einen Gesamtbetrag von 1.100,0 Millionen US-Dollar an vorrangigen Anleihen in einer privaten Platzierung anzubieten. Die Anleihen werden von bestimmten Tochtergesellschaften von Shift4 jointly und severally auf unbesicherter Basis garantiert.
Das Unternehmen beabsichtigt, den Nettoerlös für allgemeine Unternehmenszwecke zu verwenden, einschließlich Betriebskapital, Übernahmen, Schuldenrückzahlungen, Rückkäufe von Stammaktien und andere Geschäftsmöglichkeiten. Shift4 erwartet, einen Teil der Erlöse zur Rückzahlung von bestehenden Krediten für seine 690,0 Millionen US-Dollar an 0,00% wandelbaren vorrangigen Anleihen mit Fälligkeit 2025 und/oder 450,0 Millionen US-Dollar an 4,625% vorrangigen Anleihen mit Fälligkeit 2026 zu verwenden.
Die Anleihen werden nicht unter dem Wertpapiergesetz registriert und nur qualifizierten institutionellen Käufern und bestimmten Personen in Offshore-Transaktionen angeboten.
- Raising $1,100.0 million through senior notes offering
- Potential to retire existing debt and strengthen balance sheet
- Flexibility for acquisitions and business expansion opportunities
- Increase in overall debt load
- Potential dilution if convertible notes are converted to equity
Insights
Shift4 Payments' proposed
However, investors should note that this offering will increase Shift4's debt load, potentially affecting its leverage ratios. The impact on the company's credit profile and future borrowing costs will depend on the final terms of the notes. While the additional capital could fuel growth initiatives, it also introduces higher interest expenses, which may impact profitability in the short term.
The private nature of the offering to qualified institutional buyers suggests a targeted approach to raise capital without diluting existing shareholders. Overall, this move indicates Shift4's confidence in its future cash flows to service the new debt, but also signals a more aggressive financial strategy.
Shift4 Payments' decision to issue
The flexibility in the use of proceeds, including for acquisitions, suggests that Shift4 is eyeing strategic opportunities to consolidate its position or expand into new market segments. This proactive approach could be important in an industry characterized by rapid technological change and increasing consolidation.
However, the success of this strategy will heavily depend on Shift4's ability to effectively deploy the capital. Investors should closely monitor the company's capital allocation decisions and their impact on market share and revenue growth in the coming quarters. The market's reaction to this offering will be a key indicator of investor confidence in Shift4's growth prospects and financial management.
The structure of Shift4 Payments'
However, this approach limits the initial investor base to qualified institutional buyers and certain non-U.S. persons, which could impact liquidity in the secondary market. The joint and several guarantees by certain subsidiaries add a layer of complexity to the offering's legal structure and may have implications for future corporate restructuring or subsidiary operations.
Investors should be aware that these notes, being unregistered, will have resale restrictions. The company's disclaimer about the offering not constituting an offer to sell in certain jurisdictions is a standard legal precaution to ensure compliance with various securities laws. Overall, while this structure offers flexibility to Shift4, it also requires careful navigation of securities regulations and ongoing compliance considerations.
Shift4 intends to use the net proceeds of the offering for general corporate purposes, which includes working capital, acquisitions, retirement of debt, repurchases of common stock and other business opportunities. Shift4 currently expects to retain certain of the net proceeds to repay outstanding borrowings under Shift4 Payments, Inc.’s
The Notes have not been and will not be registered under the Securities Act and have not and will not be offered or sold within
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities 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. Any offers of the Notes will be made only by means of a private offering memorandum.
There can be no assurances that the offering of the Notes will be completed as described herein or at all.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Shift4 intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including statements regarding our intention to repay outstanding borrowings under the 2025 Notes and/or the 2026 Notes.
These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any futures results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: the substantial and increasingly intense competition worldwide in the financial services, payments and payment technology industries; potential changes in the competitive landscape, including disintermediation from other participants in the payments chain; the effect of global economic, political and other conditions on trends in consumer, business and government spending; fluctuations in inflation; our ability to anticipate and respond to changing industry trends and the needs and preferences of our merchants and consumers; our reliance on third-party vendors to provide products and services; risks associated with acquisitions; our inability to protect our IT systems and confidential information, as well as the IT systems of third parties we rely on, from continually evolving cybersecurity risks, security breaches and/or other technological risks; compliance with governmental regulation and other legal obligations, particularly related to privacy, data protection and information security, marketing, cryptocurrency, and consumer protection laws across different markets where we conduct our business; our ability to continue to expand our share of the existing payment processing markets or expand into new markets; additional risks associated with our expansion into international operations, including compliance with and changes in foreign governmental policies, as well as exposure to foreign exchange rates; our ability to integrate and interoperate our services and products with a variety of operating systems, software, devices, and web browsers; our dependence, in part, on our merchant and software partner relationships and strategic partnerships with various institutions to operate and grow our business; and the significant influence Jared Isaacman, our CEO and founder, has over us, including control over decisions that require the approval of stockholders. These and other important factors discussed under the caption “Risk Factors” in Part I, Item 1A in our Annual Report on Form 10-K for the year ended December 31, 2023 and in Part II, Item 1A. in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 and our other filings with the Securities and Exchange Commission could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release.
Any such forward-looking statements represent management’s expectations as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.
About Shift4 Payments:
Shift4 Payments (NYSE: FOUR) is boldly redefining commerce by simplifying complex payments ecosystems across the world. As the leader in commerce-enabling technology, Shift4 powers billions of transactions annually for hundreds of thousands of businesses in virtually every industry. For more information, visit shift4.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240811427548/en/
Investor Relations:
Thomas McCrohan
484.735.0779
investors@shift4.com
Paloma Main
484.954.5768
investors@shift4.com
Media:
Nate Hirshberg
Senior Vice President, Marketing
Shift4 Payments
888.276.2108 x1107
nhirshberg@shift4.com
Source: Shift4 Payments, Inc.
FAQ
What is the purpose of Shift4 Payments' $1,100.0 million senior notes offering?
How does Shift4 Payments plan to use the proceeds from the senior notes offering?
Who can participate in Shift4 Payments' senior notes offering?
Will Shift4 Payments' senior notes be registered under the Securities Act?
