Pitney Bowes International to redeem all $300 million of preferreds

By Tali Rackner

Norfolk, Va., Sept. 12 – Pitney Bowes Inc. plans to cause its subsidiary, Pitney Bowes International Holdings, Inc., to redeem all $300 million of its outstanding perpetual voting preferred stock, according to an 8-K filing with the Securities and Exchange Commission.

The 300,000 preferreds entitle their holders to cumulative dividends when, as and if declared by Pitney Bowes International’s board of directors out of legally available funds, at an annual rate of 6.125% of the shares’ stated value through Oct. 29 and at an annual rate of 9.1875% of the value from Oct. 30 through April 29, 2017, subject to further increases, the filing said.

The preferreds become redeemable at Pitney Bowes International’s option on Oct. 30. The company is expected to announce the redemption date at least 30 days in advance.

Pitney Bowes International expects to fund the redemption with the proceeds from an issuance of dollar-denominated, intermediate maturity, registered senior notes, subject to market conditions, together with cash on hand.

The mail processing equipment company is based in Stamford, Conn.

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