logo
Plus   Neg
Share
Email

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 RTTNews Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
In the age of social media, it takes mere hours for a company to suffer the backlash of of allegations of racism. For some companies, these incidents have hurt their bottom line and sullied their reputations. For others, they were a blip caused by clumsy if not altogether coincidental missteps. In... BJ's Wholesale Club Holdings Inc., which is planning a return to the public market, has set terms for its planned initial public offering or IPO. In a filing with the U.S. Securities and Exchange Commission, the warehouse club operator said Monday that it plans to offer 37.5 million shares priced between $15 and $17 per share. At the top end of the range, the offering would raise $637.5 million. Shares of Valeant Pharmaceuticals International Inc. are falling more than 6 percent in Monday's trading following news that the U.S. Food and Drug Administration has failed to approve the Canada-based company's Duobrii lotion for the treatment of plaque psoriasis. Ortho Dermatologics, a division of Valeant Pharmaceuticals, said it has received a Complete Response Letter or CRL from the FDA.
Follow RTT