Q2 Holdings plans to buy back $24.5 million of its 0.75% convertibles

By Rebecca Melvin

Concord, N.H., May 12 – Q2 Holdings, Inc. plans to repurchase $24.5 million principal amount of its 0.75% convertible senior notes due 2023 after having entered into repurchase agreements with certain holders of the notes, according to an 8-K filed with the Securities and Exchange Commission.

The cash purchase price will be determined by a six-day averaging period set forth in the repurchase agreements. The privately negotiated transactions are expected to settle on May 24, subject to customary closing conditions.

Following the settlement of the repurchases, $23.5 million principal amount of the notes will remain outstanding with terms unchanged.

In connection with the repurchases, Q2 entered into agreements with certain financial institutions to terminate a portion of the convertible note hedge transactions and the warrant transactions with option counterparties tied to the issuance of the notes.

Q2 Holdings is an Austin, Tex.-based digital banking platform.

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