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
Apple confirmed that it has bought face animation software firm Faceshift, although it was tight lipped about how it intends to use the new addition. The move is speculated as a bid to expand into virtual reality. Environment ministry of South Korea Thursday ordered Volkswagen Korea to recall 125,522 diesel vehicles on determining actual emissions of nitrogen oxides. The ministry has asked the German automobile maker to pay a fine of 14.1 billion Won or $12.31 million. The company has to submit a recall plan by January 6, 2016. The U.S. Food and Drug Administration has alerted health care professionals and patients of a voluntary recall of compounded multivitamin capsules containing high amounts of Vitamin D3 (Cholecalciferol), distributed nationwide by Glades Drugs in Pahokee, Florida. FDA has received reports of several...
comments powered by Disqus
Follow RTT