5.5% perpetual preferreds convert at $30.00, sold to Blackstone Group
By Devika Patel
Knoxville, Tenn., Nov. 12 – NCR Corp. said it negotiated an $820 million private placement of 5.5% convertible perpetual preferred stock to Blackstone Group LP.
The preferreds are convertible at $30.00 per share. The conversion price is a 12.02% premium to the Nov. 10 closing share price of $26.78 and is also an 18% premium to the 30-day volume-weighted average price ended Nov. 11, the company noted in a press release. Dividends are payable in kind for the first four years.
Proceeds, along with cash on hand and borrowings from the company’s revolving facilities, will be used for a self-tender of up to $1 billion of common stock. NCR intends to repurchase up to $1 billion of its shares through a modified “Dutch Auction” tender offer at an expected price range between $26.00 and $29.50 per share. The tender is expected to begin on Nov. 13.
NCR is a Duluth, Ga.-based consumer transaction technologies company.
| Issuer: | NCR Corp.
|
| Issue: | Convertible perpetual preferred stock
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| Amount: | $820 million
|
| Dividends: | 5.5%
|
| Conversion price: | $30.00
|
| Conversion premium: | 12.02%
|
| Warrants: | No
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| Investor: | Blackstone Group LP
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| Pricing date: | Nov. 12
|
| Stock symbol: | NYSE: NCR
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| Stock price: | $26.78 at close Nov. 10
|
| Market capitalization: | $4.54 billion
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