PAR Technology Corporation Announces Proposed Offering of $100 Million of Convertible Senior Notes
PAR Technology (NYSE: PAR) has announced its intention to offer $100 million of Convertible Senior Notes due 2030 in a private offering to qualified institutional buyers. The company may grant an additional $15 million option to initial purchasers.
The Notes will be unsecured obligations with semiannual interest payments, convertible into cash, company stock, or a combination thereof. PAR plans to use the proceeds to repay its $90 million Blue Owl Term Loan, with remaining funds allocated for general corporate purposes and potential acquisitions.
The Notes won't be redeemable before January 20, 2028, after which PAR can redeem them at 100% of principal plus accrued interest if the stock price maintains 130% of conversion price for specified periods. Final terms, including interest rate and conversion rate, will be determined based on market conditions.
PAR Technology (NYSE: PAR) ha annunciato la sua intenzione di offrire 100 milioni di dollari di Note Senior Convertibili con scadenza nel 2030 in un'offerta privata riservata a acquirenti istituzionali qualificati. L'azienda potrebbe concedere un'ulteriore opzione di 15 milioni di dollari ai primi acquirenti.
Le Note saranno obbligazioni non garantite con pagamenti semestrali degli interessi, convertibili in contante, azioni della società o una combinazione di entrambi. PAR prevede di utilizzare i proventi per estinguere il proprio 90 milioni di dollari Blue Owl Term Loan, con i fondi rimanenti destinati a scopi aziendali generali e potenziali acquisizioni.
Le Note non saranno rimborsabili prima del 20 gennaio 2028, dopodiché PAR potrà rimborsarle al 100% del capitale più gli interessi maturati se il prezzo delle azioni mantiene il 130% del prezzo di conversione per determinati periodi. I termini finali, inclusi il tasso di interesse e il tasso di conversione, saranno determinati in base alle condizioni di mercato.
PAR Technology (NYSE: PAR) ha anunciado su intención de ofrecer 100 millones de dólares en Notas Senior Convertibles con vencimiento en 2030 en una oferta privada dirigida a compradores institucionales calificados. La compañía puede otorgar una opción adicional de 15 millones de dólares a los compradores iniciales.
Las Notas serán obligaciones no garantizadas con pagos de interés semestrales, convertibles en efectivo, acciones de la empresa o una combinación de ambos. PAR planea utilizar los ingresos para pagar su 90 millones de dólares Blue Owl Term Loan, destinando los fondos restantes a fines corporativos generales y posibles adquisiciones.
Las Notas no serán redimibles antes del 20 de enero de 2028, después de lo cual PAR podrá redimirlas al 100% del capital más los intereses acumulados si el precio de la acción mantiene el 130% del precio de conversión durante períodos específicos. Los términos finales, incluidos el tipo de interés y el tipo de conversión, se determinarán en función de las condiciones del mercado.
PAR Technology (NYSE: PAR)는 1억 달러의 2030년 만기 전환 가능 고급 채권을 자격 있는 기관 투자자에게 비공식적으로 제공할 계획이라고 발표했습니다. 회사는 초기 구매자에게 추가로 1500만 달러의 옵션을 제공할 수 있습니다.
채권은 담보가 없는 의무로 반기별 이자 지급을 하며, 현금, 회사 주식 또는 이들의 조합으로 전환할 수 있습니다. PAR는 수익금을 9000만 달러 규모의 Blue Owl Term Loan을 상환하는 데 사용할 예정이며, 나머지 자금은 일반 기업 목적과 잠재적 인수에 Allocate될 것입니다.
채권은 2028년 1월 20일 이전에는 상환될 수 없으며, 그 이후 PAR는 주가가 특정 기간 동안 전환 가격의 130%를 유지하면 원금의 100%와 누적 이자를 상환할 수 있습니다. 최종 조건, 이자율 및 전환율은 시장 상황에 따라 결정됩니다.
PAR Technology (NYSE: PAR) a annoncé son intention de proposer 100 millions de dollars de Billets Senior Convertibles arrivant à échéance en 2030 lors d'une offre privée destinée à des acheteurs institutionnels qualifiés. La société pourrait accorder une option supplémentaire de 15 millions de dollars aux acheteurs initiaux.
Les Billets seront des obligations non sécurisées avec des paiements d'intérêts semestriels, convertibles en espèces, actions de la société ou une combinaison des deux. PAR prévoit d'utiliser les recettes pour rembourser son 90 millions de dollars Blue Owl Term Loan, les fonds restants étant alloués à des fins d'entreprise générales et à d'éventuelles acquisitions.
Les Billets ne pourront pas être rachetés avant le 20 janvier 2028, après quoi PAR pourra les racheter à 100% du capital plus les intérêts courus si le prix de l'action maintient 130% du prix de conversion pendant des périodes précisées. Les termes finaux, y compris le taux d'intérêt et le taux de conversion, seront déterminés en fonction des conditions du marché.
PAR Technology (NYSE: PAR) hat bekannt gegeben, dass sie beabsichtigen, 100 Millionen Dollar an wandelbaren Senior-Notes mit Fälligkeit 2030 in einem privaten Angebot an qualifizierte institutionelle Käufer anzubieten. Das Unternehmen könnte auch eine zusätzliche Option von 15 Millionen Dollar für die Erstkäufer gewähren.
Die Notes werden ungesicherte Verpflichtungen mit halbjährlichen Zinszahlungen sein, die in Bargeld, Unternehmensaktien oder eine Kombination davon umgewandelt werden können. PAR plant, die Einnahmen zur Rückzahlung des 90 Millionen Dollar Blue Owl Term Loans zu verwenden, wobei die verbleibenden Mittel für allgemeine Unternehmenszwecke und potenzielle Akquisitionen vorgesehen sind.
Die Notes sind vor dem 20. Januar 2028 nicht kündbar, nach diesem Datum kann PAR sie zu 100% des Nennwerts plus aufgelaufene Zinsen einlösen, wenn der Aktienkurs für bestimmte Zeiträume 130% des Umwandlungspreises hält. Die endgültigen Bedingungen, einschließlich des Zinssatzes und des Umwandlungskurses, werden basierend auf den Marktbedingungen festgelegt.
- Potential debt restructuring through conversion of notes to equity
- Additional financial flexibility with $100M offering plus $15M option
- Opportunity to repay existing $90M Blue Owl Term Loan
- Potential future dilution for existing shareholders upon note conversion
- Increased debt obligation with new $100M convertible notes
- Additional interest payment obligations
Insights
This convertible note offering represents a strategic refinancing move to replace PAR's existing
The convertible structure is particularly noteworthy as it offers a lower interest rate compared to traditional debt, though exact rates are pending market conditions. The 2030 maturity provides extended runway, while the conversion option starting October 2029 and early redemption rights from January 2028 (at
For retail investors: Think of this like refinancing a mortgage - PAR is essentially replacing a potentially higher-interest loan with a new one that comes with special features. The conversion option is like giving lenders a ticket that they can exchange for PAR shares if the stock price rises significantly, making the debt more attractive to investors and thus typically resulting in lower interest rates for PAR.
PAR's decision to tap the convertible bond market signals confidence in their growth trajectory and ability to potentially service debt through equity. The timing is strategic, capitalizing on the current market environment where investors are seeking yield with potential equity upside. The
Two key implications stand out: First, the ability to repay the Blue Owl Term Loan suggests strong institutional interest in PAR's convertible offering. Second, the flexibility to use remaining proceeds for acquisitions or technology investments positions PAR to potentially accelerate its growth strategy in the restaurant technology sector.
Simple explanation: PAR is trading in a regular loan for a special type of loan that could turn into company shares in the future. This new arrangement gives PAR more breathing room and could help them grow faster, while potentially costing them less in interest payments.
- BLUE OWL TERM LOAN TO BE REPAID FROM OFFERING PROCEEDS
The Notes will be general unsecured obligations of the Company with interest payable semiannually. The Notes will be convertible at the option of the holders, at any time prior to the close of business on the business day immediately preceding October 15, 2029 only under certain circumstances and during certain periods and, on or after October 15, 2029, at any time until the close of business on the business day immediately preceding the maturity date. Upon conversion, the Notes may be settled, at the Company’s election, in cash, shares of the Company’s common stock, or a combination of cash and shares of the Company’s common stock.
The Notes will not be redeemable at the Company’s option prior to January 20, 2028. The Company may redeem for cash, all or any portion of the Notes (subject to certain limitations on partial redemptions), at its option, on or after January 20, 2028, at a redemption price equal to
The Company intends to use the net proceeds from the Offering to repay in full the
The Company intends to use the remaining net proceeds from the Offering (including any net proceeds from the sale of any additional Notes that may be sold should the initial purchaser exercise its option to purchase additional Notes) for general corporate purposes. The Company may also use a portion of the proceeds to acquire or invest in companies, products, or technologies complementary to its business.
The Notes will only be offered to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act. The Notes and any shares of the Company’s common stock issuable upon conversion of the Notes, have not been, and will not be, registered under the Securities Act or the securities laws of any other jurisdiction, and unless so registered, may not be offered or sold in
This announcement is neither an offer to sell nor a solicitation of an offer to buy the Notes or any shares of the Company’s common stock issuable upon conversion of the Notes, nor will there be any offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.
Forward-Looking Statements.
This press release contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, Section 27A of the Securities Act of 1933, as amended, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical in nature, but rather are predictive of PAR’s future operations, financial condition, financial results, business strategies and prospects. Forward-looking statements are generally identified by words such as “believe,” “continue,” “could,” “expect,” “intend,” “may,” “should,” “will,” and similar expressions. Forward-looking statements are based on management’s current expectations and assumptions that are subject to a variety of risks and uncertainties, many of which are beyond PAR’s control, which could cause PAR’s actual results to differ materially from those expressed in or implied by forward-looking statements, including statements regarding the intention to offer the Notes, the intended use of proceeds from the Offering (including the amount, terms, and timing of the proposed repayment of the Blue Owl Term Loan), and the expected terms of the Offering. Risks and uncertainties that could cause or contribute to such differences include risks related to: whether the Company will consummate the Offering of the Notes on the expected terms, or at all; the potential impact of market and other general economic conditions; whether the Company will be able to satisfy the conditions required to close any sale of the Notes; the intended use of the proceeds of the Offering; and the fact that the Company’s management will have broad discretion in the use of the proceeds from any sale of the Notes; as well as, but not exclusively, the risks and uncertainties discussed in PAR’s Annual Report on Form 10-K for the year ended December 31, 2023 and its other filings with the Securities and Exchange Commission. Forward-looking statements contained in this press release are based solely on the information known to PAR’s management and speak only as of the date of this press release. PAR undertakes no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events, or otherwise, except as may be required under applicable securities law.
About PAR Technology Corporation
For over four decades, PAR Technology Corporation (NYSE: PAR) has been at the forefront of technology innovation in foodservice, helping businesses create exceptional guest experiences and connections. PAR’s comprehensive suite of software and hardware solutions, including point-of-sale, digital ordering, loyalty, back-office management, and payments, serves a diverse range of hospitality and retail clients across more than 110 countries. With its “Better Together” ethos, PAR continues to deliver unified solutions that drive customer engagement, efficiency, and growth, all to make it easier for PAR’s customers to manage their operations.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250121360223/en/
Christopher R. Byrnes (315) 743-8376
chris_byrnes@partech.com, www.partech.com
Source: PAR Technology Corporation
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