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CENTER VALLEY, Pa. - Shift4 Payments, Inc. (NYSE:FOUR), a prominent provider of integrated payment and commerce technology with a market capitalization of $7.58 billion and impressive revenue growth of 27.39% over the last twelve months, has priced a significant debt offering as part of its financing strategy for an upcoming acquisition. According to InvestingPro analysis, the company maintains a "GREAT" financial health score of 3.01, suggesting strong fundamentals to support this strategic move. The company has announced the pricing of approximately €680 million in 5.500% senior notes due 2033 and $550 million in 6.750% senior notes due 2032. The latter will be additional securities under an existing indenture from August 15, 2024.
The newly priced 2032 notes are set to be treated as a single class with the existing notes of the same rate and maturity, differing only in issue date and price. The 2033 Euro Notes were priced at par and the 2032 Notes at 100.50%. The offering is exempt from registration under the Securities Act of 1933 and is targeted at qualified institutional buyers and certain offshore transactions. With a current ratio of 1.36 and existing total debt of $2.88 billion, Shift4’s balance sheet appears well-positioned to manage this additional debt load. InvestingPro’s Fair Value analysis suggests the stock is currently undervalued, indicating potential upside despite the new debt offering.
The proceeds from the notes, alongside a new secured term loan, mandatory convertible preferred stock sale, and available cash, will fund a portion of the cash consideration for the acquisition of Global Blue Group Holding AG. Additionally, funds may be used to redeem or repay the company’s 4.625% Senior Notes due 2026, although no assurances have been made regarding this redemption or repayment.
The closing of the notes offering is anticipated on May 16, 2025, subject to customary closing conditions. The offering is not contingent on the redemption or repayment of the 2026 notes.
Shift4 Payments has expressed intentions to use the net proceeds for various corporate purposes, including debt repayment, strategic acquisitions, and growth initiatives. However, there is no certainty that the offering or the term loan will be finalized as planned.
This press release includes forward-looking statements regarding the proposed merger with Global Blue and the anticipated benefits and synergies. These statements are subject to risks, uncertainties, and other factors that could affect the actual results of the merger and integration process. For deeper insights into Shift4’s financial position and growth prospects, including 12 additional ProTips and comprehensive valuation metrics, investors can access the full analysis through InvestingPro, which offers detailed Pro Research Reports covering over 1,400 US stocks.
The information for this article is based on a press release statement from Shift4 Payments, Inc.
In other recent news, Shift4 Payments reported strong first-quarter earnings, prompting DA Davidson to maintain its Buy rating and set a price target of $124. The company has also revised its 2025 financial outlook upwards, reflecting confidence in its growth trajectory. Additionally, Shift4 Payments announced a proposed $550 million senior notes offering to support the acquisition of Global Blue Group Holding AG and other corporate actions. Moody’s upgraded Shift4’s corporate family rating to Ba3 from B1, with a stable outlook, citing expectations of reduced leverage following the Global Blue acquisition. The company has initiated an underwritten public offering of 7,500,000 shares of its Series A Mandatory Convertible Preferred Stock, aimed at financing the Global Blue deal. Benchmark analysts upgraded Shift4 Payments’ stock rating from Hold to Buy, setting a price target of $111, reflecting optimism about the company’s financial performance. The firm plans to use net proceeds from the term loan and preferred stock offering for the Global Blue acquisition, which is expected to close by the third quarter of 2025. These developments reflect a strategic expansion and increased financial activity for Shift4 Payments in the current market landscape.
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