Pitney Bowes prices $200 million convertible notes offering

STAMFORD - Pitney Bowes Inc. (NYSE:PBI), which has seen its stock surge over 56% year-to-date and maintains an impressive 53.6% gross profit margin according to InvestingPro, announced Tuesday the pricing of a $200 million private offering of 1.50% convertible senior notes due 2030, with an option for initial purchasers to buy an additional $30 million in notes.

The transaction, expected to close on August 8, will generate approximately $192.4 million in net proceeds after deducting discounts, commissions and offering expenses, according to a company press release.

Pitney Bowes plans to allocate $21.5 million to fund capped call transactions designed to reduce potential dilution to common stock upon conversion of the notes. Additionally, about $61.9 million will go toward repurchasing company shares concurrently with the pricing of the offering.

The convertible notes will mature on August 15, 2030, with interest payable semi-annually beginning February 15, 2026. The initial conversion rate is 70.1533 shares per $1,000 principal amount, equivalent to a conversion price of approximately $14.25 per share, representing a 27.5% premium to the August 5 closing price of $11.18.

The company may redeem the notes on or after August 21, 2028, under certain conditions. Prior to May 15, 2030, the notes will be convertible only upon satisfaction of specific conditions, and thereafter at any time until two trading days before maturity.

The notes will be senior unsecured obligations, fully guaranteed by Pitney Bowes’ existing and future wholly owned U.S. subsidiaries that guarantee the company’s existing credit agreement and other qualifying debt. With a current ratio of 0.76 and total debt of $2.02 billion, detailed debt analysis and over 30 additional financial metrics are available through InvestingPro’s exclusive research reports.

The offering is being made to qualified institutional buyers under Rule 144A of the Securities Act. The notes and related guarantees have not been registered under the Securities Act and may not be offered or sold in the United States without an exemption from registration requirements.

In other recent news, Pitney Bowes reported its Q2 2025 earnings, which fell short of analysts’ expectations. The company posted an earnings per share (EPS) of $0.27, slightly below the forecasted $0.28, resulting in a 3.57% negative surprise. Revenue was also lower than anticipated, coming in at $462 million compared to the expected $476.21 million, marking a 2.98% miss. In addition to the earnings report, Pitney Bowes announced plans to offer $200 million in convertible senior notes due 2030. This offering includes an option for initial purchasers to buy an additional $30 million in notes. The company plans to use part of the proceeds to fund capped call transactions to mitigate potential dilution to common stock upon conversion of the notes. Up to $75 million will be allocated to repurchase shares of the company’s common stock concurrently with the pricing of the offering. These developments provide a snapshot of the company’s recent financial activities and strategic moves.

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