logo
Share SHARE
FONT-SIZE Plus   Neg

DFC Global Closes Sale Of $230 Mln Of Senior Convertible Notes

DFC Global Corp. (DLLR) said Monday that it has consummated the sale of $230 million aggregate principal amount of 3.25% senior convertible notes due 2017, which includes the exercise in full of the initial purchasers' overallotment option.

In connection with the offering of the notes, the company has entered into convertible note hedge transactions in respect of its common stock with affiliates of the initial purchasers of the notes. The convertible note hedge transactions are intended to reduce the potential dilution upon future conversion of the notes.

In addition, the company has entered into separate warrant transactions with the option counterparties at a higher strike price. The warrant transactions could separately have a dilutive effect to the extent that the market value per share of the company's common stock exceeds the applicable strike price of the warrants.

The net proceeds from the offering was about $222.0 million, after deducting the initial purchasers' discounts and the estimated offering expenses.
The company applied a portion of the net proceeds from the offering and the sale of the warrants to fund the costs and expenses of the convertible note hedge transactions, and the company expects to apply the remaining net proceeds to repay certain indebtedness and for other general corporate purposes, which may include acquisitions, investments and repurchases of company common stock from time to time pursuant to the company's previously announced share repurchase program.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
French energy giant Total SA announced Monday that it has agreed to acquire E&P company Maersk Oil & Gas A/S, a unit of A.P. Moller-Maersk A/S, in a $7.45 billion share and debt transaction. Under the agreed terms, the Denmark-based shipping and oil company will receive a consideration of $4.95 billion in Total shares. A.P. Moller-Maersk shares were gaining around 4 percent. Cable-cutters have now one more reason to do so as live television streaming will be available on YouTube TV in 14 more markets in the U.S. Facebook Chief Operating Officer Sheryl Sandberg has donated nearly $100 million in Facebook shares to charity. This is her second charitable donation within a year. A document was filed on Thursday with the Security and Exchange Commission, which shows that Sandberg transferred shares to a special fund she uses for charitable donations.
comments powered by Disqus
Follow RTT