Global Payments’ Strategic Financial Moves with Convertible Notes

Global Payments Inc. (GPN) has released an update.

Global Payments Inc. successfully closed a $2 billion offering of 1.50% Convertible Senior Notes due in 2031, with an option exercised for an additional $250 million. These notes, paying interest semi-annually, are convertible into cash, company stock, or a combination under certain conditions. Proceeds from the offering, after expenses, were about $1.96 billion, used to repurchase company stock, cover capped call transactions, and for corporate purposes including debt repayment. The notes are senior unsecured obligations, with conversion and redemption terms outlined, aiming to minimize shareholder dilution and financial impact on the company.

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