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

Editors Pick
Taco Bell, a division of Yum! Brands Inc, is planning to test delivery of food items on college campuses, the Street reported. The move comes at a time the fast food chain seeks to leverage demand for its popular breakfast and dinner items. In an unusual incident, an Airbus operated by Singapore Airlines temporarily lost power on both its Rolls Royce engines during a flight and plunged almost 13,000 feet or 3.96 kilometers. However, pilots managed to save the Airbus through standard operational procedures and it continued on its routine path. Hormel Foods has agreed to buy organic meat products maker Applegate Farms LLC for about $775 million, as consumers increasingly use natural and organic foods in their diet.
comments powered by Disqus
Follow RTT