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LEAWOOD, Kan. - Euronet Worldwide, Inc. (NASDAQ:EEFT), a $4 billion market cap electronic payments provider with robust financials and a "GOOD" overall health score according to InvestingPro, has priced $850 million in 0.625% Convertible Senior Notes due 2030 in a private placement to qualified institutional buyers, according to a company statement released Wednesday.
The electronic payments provider, which generated $670.1 million in EBITDA over the last twelve months, has granted initial purchasers an option to buy up to an additional $150 million in notes. The offering is expected to close on Thursday, with the notes maturing on October 1, 2030.
The notes will bear interest at 0.625% per year, payable semiannually beginning April 1, 2026. They will be convertible under certain circumstances, with an initial conversion rate of 7.8718 shares per $1,000 principal amount, equivalent to a conversion price of approximately $127.04 per share.
Euronet plans to use the net proceeds to repay borrowings under its existing unsecured revolving credit facility. The company is also using approximately $84.8 million of cash to pay for capped call transactions and approximately $131.3 million to repurchase its common stock in privately negotiated transactions.
The capped call transactions are expected to reduce potential dilution to Euronet’s common stock upon conversion of the notes. The cap price of these transactions is initially set at approximately $180.78 per share, representing an 85% premium over Euronet’s last reported share price of $97.72 on Wednesday. Trading at a P/E ratio of 12.75, the stock appears undervalued according to InvestingPro’s Fair Value analysis. Get access to the complete Pro Research Report and 6 additional exclusive ProTips for deeper insights into Euronet’s financial outlook.
The notes cannot be redeemed prior to October 7, 2028, after which Euronet may redeem them under specific conditions, including if the company’s stock price has been at least 130% of the conversion price for a specified period.
The notes and any shares issuable upon conversion have not been registered under the Securities Act and may not be offered or sold in the United States without registration or an applicable exemption.
In other recent news, Euronet Worldwide reported its Q2 2025 earnings, which did not meet analyst expectations. The company announced an earnings per share (EPS) of $2.56, falling short of the projected $2.66, a negative surprise of 3.76%. Revenue also missed the mark, totaling $1.07 billion against an anticipated $1.08 billion. Additionally, Euronet Worldwide revealed plans to offer $850 million in convertible senior notes due 2030. These notes will be issued through a private placement to qualified institutional buyers under Rule 144A of the Securities Act. The company has also granted initial purchasers the option to buy up to an additional $150 million in notes within 13 days of the initial issuance. These convertible notes will be general unsecured obligations, with Euronet having the discretion to convert them into cash, shares of common stock, or a combination of both.
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