CSG Systems International Announces Proposed Offering of Convertible Senior Notes

About this update from Csg Systems International, Inc.

[{"type":"text","content":" DENVER--(BUSINESS WIRE)--\nCSG Systems International, Inc. (NASDAQ: CSGS) today announced it intends to offer, subject to market and other conditions, $350.0 million aggregate principal amount of Convertible Senior Notes due 2028 (the “notes”) in a private placement to persons reasonably believed to be qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). CSG also expects to grant the initial purchasers of the notes an option to purchase up to an additional $52.5 million aggregate principal amount of the notes, for settlement within a 13-day period beginning on, and including, the first date on which the notes are issued. The notes will be CSG’s senior unsecured obligations.\n\n\nThe notes will mature on September 15, 2028, unless earlier converted, redeemed or repurchased. CSG will satisfy its conversion obligations by paying cash up to the aggregate principal amount of notes to be converted and paying or delivering, as the case may be, cash, shares of its common stock or a combination of cash and shares of its common stock, at its election, in respect of the remainder, if any, of its conversion obligations in excess of the aggregate principal amount of the notes being converted, based on the then applicable conversion rate. The interest rate, initial conversion rate and other terms of the notes will be determined at the time of pricing of the offering.\n\n\nAfter deducting the initial purchasers’ discounts and commissions and CSG’s estimated offering expenses, CSG intends to use the net proceeds from the offering of the notes to (i) pay the cost of capped call transactions (as described below), (ii) repurchase up to $100.0 million of shares of CSG’s common stock pursuant to its existing stock repurchase program concurrently with the pricing of the offering of the notes in privately negotiated transactions effected through one of the initial purchasers or its affiliates, as CSG’s agent, and (iii) add up to $15.0 million of the net proceeds from this offering as cash to CSG’s balance sheet. CSG intends to use the remainder of the net proceeds from the offering of the notes to repay outstanding borrowings under its revolving loan facility.\n\n\nIn connection with the pricing of the notes, CSG expects to enter into privately negotiated capped call transact...

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