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Outbrain announces repurchase of remaining 2.95% Convertible Senior Notes due 2026

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Outbrain Inc. (NASDAQ: OB) has repurchased the remaining $118 million of its 2.95% Convertible Senior Notes due 2026 from Baupost Group Securities, L.L.C. The company paid $109.7 million in cash, representing a 7.5% discount to par value. This transaction will result in a pre-tax gain of approximately $8.8 million in Q3 2024.

Following this repurchase, Outbrain has eliminated its entire $236 million principal balance of Convertible Notes, leaving no remaining debt on its balance sheet. The company now has approximately $128 million in cash, cash equivalents, and investments in marketable securities.

CFO Jason Kiviat stated that this move strengthens Outbrain's balance sheet and increases its net cash balance while maintaining ample liquidity for future growth, particularly in anticipation of the expected Teads acquisition closing.

Outbrain Inc. (NASDAQ: OB) ha riacquistato i rimanenti 118 milioni di dollari dei suoi Obbligazioni Convertibili Senior al 2,95% in scadenza nel 2026 dalla Baupost Group Securities, L.L.C. L'azienda ha pagato 109,7 milioni di dollari in contanti, che corrisponde a un sconto del 7,5% sul valore nominale. Questa transazione comporterà un guadagno ante imposte di circa 8,8 milioni di dollari nel terzo trimestre del 2024.

Dopo questo riacquisto, Outbrain ha eliminato l'intero saldo principale di 236 milioni di dollari delle Obbligazioni Convertibili, lasciando nessun debito residuo nel suo bilancio. L'azienda ha ora circa 128 milioni di dollari in contanti, equivalenti in contante e investimenti in titoli negoziabili.

Il CFO Jason Kiviat ha dichiarato che questa mossa rafforza il bilancio di Outbrain e aumenta il suo saldo di cassa netto, mantenendo nel contempo una liquidità adeguata per la crescita futura, in particolare in previsione della chiusura dell'acquisizione attesa di Teads.

Outbrain Inc. (NASDAQ: OB) ha recomprado los restantes 118 millones de dólares de sus Notas Senior Convertibles al 2,95% que vencen en 2026 a Baupost Group Securities, L.L.C. La empresa pagó 109,7 millones de dólares en efectivo, lo que representa un descuento del 7,5% sobre el valor nominal. Esta transacción resultará en una ganancia antes de impuestos de aproximadamente 8,8 millones de dólares en el tercer trimestre de 2024.

Tras esta recompra, Outbrain ha eliminado su saldo principal total de 236 millones de dólares de Notas Convertibles, dejando sin deuda restante en su balance. La empresa ahora tiene aproximadamente 128 millones de dólares en efectivo, equivalentes en efectivo e inversiones en valores negociables.

El CFO Jason Kiviat afirmó que este movimiento fortalece el balance de Outbrain y aumenta su saldo de efectivo neto, al tiempo que mantiene una liquidez suficiente para el crecimiento futuro, particularmente en anticipación del cierre esperado de la adquisición de Teads.

아웃브레인 Inc.(NASDAQ: OB)는 남은 1억 1,800만 달러를 재매입하였습니다 2026년 만기 2.95% 전환 시니어 노트를 Baupost Group Securities, L.L.C.로부터 매입했습니다. 회사는 현금으로 1억 970만 달러를 지급했습니다, 이는 액면가의 7.5% 할인에 해당합니다. 이 거래로 인해 2024년 3분기에 약 880만 달러의 세전 이익이 발생할 것입니다.

이 재매입 이후, 아웃브레인은 236백만 달러의 전환 노트 전액을 상환했습니다, 잔여 부채가 없습니다. 회사는 현재 약 1억 2,800만 달러의 현금, 현금 등가물 및 투자자산을 보유하고 있습니다.

CFO 제이슨 키비앳은 이번 조치가 아웃브레인의 재무 상태를 강화하고 순 현금 잔고를 증가시키며, 미래 성장에 충분한 유동성을 유지한다고 밝혔습니다. 특히 예상되는 테드 인수 종료를 앞두고 있습니다.

Outbrain Inc. (NASDAQ: OB) a racheté les 118 millions de dollars restants de ses Obligations Seniors Convertibles à 2,95% arrivant à échéance en 2026 auprès de Baupost Group Securities, L.L.C. L'entreprise a payé 109,7 millions de dollars en espèces, représentant un escompte de 7,5% sur la valeur nominale. Cette transaction entraînera un gain avant impôts d'environ 8,8 millions de dollars au troisième trimestre 2024.

À la suite de ce rachat, Outbrain a éliminé l'intégralité de son solde principal de 236 millions de dollars d'Obligations Convertibles, laissant aucune dette restante dans son bilan. L'entreprise dispose désormais de environ 128 millions de dollars en espèces, équivalents de trésorerie et investissements dans des valeurs négociables.

Le CFO Jason Kiviat a déclaré que cette démarche renforce le bilan d'Outbrain et augmente son solde net de trésorerie tout en maintenant une liquidité suffisante pour la croissance future, notamment en prévision de la conclusion de l'acquisition de Teads.

Outbrain Inc. (NASDAQ: OB) hat die verbleibenden 118 Millionen Dollar seiner 2,95% wandelbaren Senior-Anleihen, die 2026 fällig werden, von der Baupost Group Securities, L.L.C. zurückgekauft. Das Unternehmen zahlte 109,7 Millionen Dollar in bar, was einem Rabatt von 7,5% auf den Nennwert entspricht. Diese Transaktion wird in Q3 2024 zu einem Gewinn vor Steuern von ungefähr 8,8 Millionen Dollar führen.

Nach diesem Rückkauf hat Outbrain den gesamten Hauptsaldo von 236 Millionen Dollar an Wandelanleihen eliminiert und hat keine verbleibenden Schulden mehr in der Bilanz. Das Unternehmen hat nun ungefähr 128 Millionen Dollar in Bargeld, Baräquivalenten und Investitionen in handelbaren Wertpapieren.

CFO Jason Kiviat erklärte, dass dieser Schritt die Bilanz von Outbrain stärkt und den Nettobargeldbestand erhöht, während ausreichend Liquidität für zukünftiges Wachstum erhalten bleibt, insbesondere im Hinblick auf den bevorstehenden Abschluss der Teads-Akquisition.

Positive
  • Repurchased remaining $118 million of Convertible Notes at a 7.5% discount
  • Pre-tax gain of approximately $8.8 million in Q3 2024
  • Eliminated entire $236 million principal balance of Convertible Notes
  • No remaining debt on balance sheet
  • Approximately $128 million in cash, cash equivalents, and investments available
  • Strengthened balance sheet and increased net cash balance
Negative
  • Cash outlay of $109.7 million for debt repurchase

NEW YORK, Sept. 23, 2024 (GLOBE NEWSWIRE) -- Outbrain Inc. (NASDAQ: OB), a leading technology platform that drives business results by engaging people across the Open Internet, announced today that it has repurchased all of the remaining $118 million in aggregate principal amount of the 2.95% Convertible Senior Notes due 2026 (the “Convertible Notes”) via a privately negotiated repurchase agreement with Baupost Group Securities, L.L.C., the sole holder of the Convertible Notes. The Company paid, including accrued interest, $109.7 million in cash representing a discount to par value of approximately 7.5%. As a result, Outbrain will record a pre-tax gain of approximately $8.8 million in the third quarter of 2024.

Following the closing of the transaction, Outbrain has repurchased the entire principal balance of $236 million of the Convertible Notes, with no remaining debt on the balance sheet and approximately $128 million of cash, cash equivalents and investments in marketable securities, when adjusting the balance as of August 31, 2024 for the repayment. Outbrain repurchased the initial $118 million principal amount of the Convertible Notes in April 2023.

“Our ability to generate cash and our strong balance sheet has enabled the opportunistic repurchase of the remaining balance of Convertible Notes, which is also in anticipation of the expected closing of the Teads acquisition. We believe this transaction strengthens our balance sheet, increasing our net cash balance as we maintain ample liquidity to support our future growth,” said Jason Kiviat, Outbrain's CFO.

This press release does not constitute an offer to sell or a solicitation to buy any of the Convertible Notes described herein or any securities of the Company, nor shall there be any offer, solicitation, or sale of the Convertible Notes or any securities of the Company in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws, which statements involve substantial risks and uncertainties. Forward-looking statements may include, without limitation, statements generally relating to possible or assumed future results of our business, financial condition, results of operations, liquidity, plans and objectives and statements relating to the transaction to acquire Teads (“Transaction”). You can generally identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “guidance,” “outlook,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “foresee,” “potential” or “continue” or the negative of these terms or other similar expressions that concern our expectations, strategy, plans or intentions or are not statements of historical fact. We have based these forward-looking statements largely on our expectations and projections regarding future events and trends that we believe may affect our business, financial condition, and results of operations. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors including, but not limited to: overall advertising demand and traffic generated by our media partners; factors that affect advertising demand and spending, such as the continuation or worsening of unfavorable economic or business conditions or downturns, instability or volatility in financial markets, and other events or factors outside of our control, such as U.S. and global recession concerns, geopolitical concerns, including the ongoing war between Ukraine-Russia and conditions in Israel, supply chain issues, inflationary pressures, labor market volatility, bank closures or disruptions, and the impact of challenging economic conditions, political and policy uncertainties with the approach of the U.S. presidential election, and other factors that have and may further impact advertisers’ ability to pay; our ability to continue to innovate, and adoption by our advertisers and media partners of our expanding solutions; the success of our sales and marketing investments, which may require significant investments and may involve long sales cycles; our ability to grow our business and manage growth effectively; our ability to compete effectively against current and future competitors; the loss or decline of one or more of our large media partners, and our ability to expand our advertiser and media partner relationships; conditions in Israel, including the ongoing war between Israel and Hamas and other terrorist organizations, may limit our ability to market, support and innovate on our products due to the impact on our employees as well as our advertisers and their advertising markets, our ability to maintain our revenues or profitability despite quarterly fluctuations in our results, whether due to seasonality, large cyclical events, or other causes; the risk that our research and development efforts may not meet the demands of a rapidly evolving technology market; any failure of our recommendation engine to accurately predict attention or engagement, any deterioration in the quality of our recommendations or failure to present interesting content to users or other factors which may cause us to experience a decline in user engagement or loss of media partners; limits on our ability to collect, use and disclose data to deliver advertisements; our ability to extend our reach into evolving digital media platforms; our ability to maintain and scale our technology platform; our ability to meet demands on our infrastructure and resources due to future growth or otherwise; our failure or the failure of third parties to protect our sites, networks and systems against security breaches, or otherwise to protect the confidential information of us or our partners; outages or disruptions that impact us or our service providers, resulting from cyber incidents, or failures or loss of our infrastructure; significant fluctuations in currency exchange rates; political and regulatory risks in the various markets in which we operate; the challenges of compliance with differing and changing regulatory requirements; the timing and execution of any cost-saving measures and the impact on our business or strategy; our ability and the time required to consummate the Transaction; our ability to successfully integrate Teads's operations, technologies and employees and to recognize the anticipated benefits and synergies of the Transaction, including the expectation of enhancements to our services, greater revenue or growth opportunities, operating efficiencies and cost savings; the potential impact of the announcement or pendency of the Transaction on ongoing business operations and relationships, including our ability to maintain relationships with employees, customers, suppliers and others with whom we do business; the amount of costs, fees, expenses and charges relating to the Transaction; the initiation or outcome of any legal proceedings that may be instituted following the announcement of the Transaction; and the risks described in the section entitled “Risk Factors” and elsewhere in the Annual Report on Form 10-K filed for the year ended December 31, 2023 and in subsequent reports filed with the SEC. Accordingly, you should not rely upon forward-looking statements as an indication of future performance. We cannot assure you that the results, events and circumstances reflected in the forward-looking statements will be achieved or will occur, and actual results, events, or circumstances could differ materially from those projected in the forward-looking statements. The forward-looking statements made in this press release relate only to events as of the date on which the statements are made. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. We undertake no obligation and do not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or circumstances after the date on which the statements are made or to reflect the occurrence of unanticipated events or otherwise, except as required by law.

About Outbrain

Outbrain (Nasdaq: OB) is a leading technology platform that drives business results by engaging people across the Open Internet. Outbrain predicts moments of engagement to drive measurable outcomes for advertisers and publishers using AI and machine learning across more than 8,000 online properties globally. Founded in 2006, Outbrain is headquartered in New York with offices in Israel and across the United States, Europe, Asia-Pacific, and South America.

For more information, visit https://www.outbrain.com.

Media Contact

press@outbrain.com

Investor Relations Contact

IR@outbrain.com

(332) 205-8999


FAQ

What was the total amount of Convertible Notes repurchased by Outbrain (OB)?

Outbrain repurchased the entire principal balance of $236 million of the 2.95% Convertible Senior Notes due 2026.

How much did Outbrain (OB) pay for the remaining $118 million of Convertible Notes?

Outbrain paid $109.7 million in cash, representing a 7.5% discount to par value, for the remaining $118 million of Convertible Notes.

What is the expected pre-tax gain for Outbrain (OB) from this repurchase in Q3 2024?

Outbrain expects to record a pre-tax gain of approximately $8.8 million in the third quarter of 2024 from this repurchase.

How much cash and investments does Outbrain (OB) have after the repurchase?

After the repurchase, Outbrain has approximately $128 million in cash, cash equivalents, and investments in marketable securities.

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