Verint Systems Raises $275M Via Upsized Private Institutional Convertible Debt

Verint Systems Inc VRNT has agreed to sell $275 million 0.25% convertible senior notes due 2026 in an upsized private institutional placement to raise $267 million in gross proceeds.
The offering was upsized from the previous $250 million.
The initial conversion price of $62.08 represents a 32.5% premium on the Apr. 6 closing price of $46.85.
The company has entered into capped call transactions with certain financial institutions to offset the potential stock dilution from any note conversion. The capped call transactions’ initial cap price is $100, representing a 113% premium to the Apr. 6 closing price.
The notes will bear an annual interest rate of 0.25%, payable semi-annually in arrears. The notes will mature on Apr. 15, 2026.
The offering proceeds will be used to pay for the capped call transactions. The company will utilize the remainder proceeds along with $200 million of its Series B convertible preferred stock issuance proceeds to repay obligations under its existing credit facility, interest rate swap agreement, 1.06 million share buybacks, working capital, and other general corporate purposes.
Verint Systems held cash and cash equivalent of $700 million as of Jan. 31, 2021.
Price action: VRNT shares traded higher by 1.94% at $46.85 in the premarket session on the last check Wednesday.