Repay talks $350 million five-year convertible notes to yield 0%-0.5%, up 30%-35%

By Abigail W. Adams

Portland, Me., Jan. 12 – Repay Holdings Corp. plans to price $350 million five-year convertible notes after the market close on Wednesday with price talk for a coupon of 0% to 0.5% and an initial conversion premium of 30% to 35%, according to a market source.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Barclays and Truist Securities Inc. are bookrunners for the Rule 144A offering, which carries a greenshoe of $52.5 million.

The notes are non-callable until Feb. 5, 2024 and then subject to a 130% hurdle.

There is dividend and takeover protection.

The notes will be settled in cash, shares or a combination of both at the company’s option.

Concurrently, the company is pricing a secondary offering of $130 million of common stock.

Proceeds from the concurrent offerings will be used to repay the company’s term loans and for general corporate purposes, which may include the redemption, repurchase, or retirement of securities, including the company’s interest in Hawk Parent Holdings LLC and future acquisitions.

Repay is an Atlanta-based financial technology and payment processing company.

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