Shift4 Payments Seeks To Raise $158M Via Secondary Share Sale, $500M Via Private Senior Convertible Note Offering

Shift4 Payments Inc FOUR proposed to offer 1.8 million shares in a secondary public offering. Certain entities associated with Searchlight Capital Partners, L.P. plans to offer 5.2 million shares.
The estimated gross proceed is $157.72 million based on Monday's closing price of $88.02.
The underwriters have a 30-day option to purchase additional shares up to 1.05 million.
The offering proceeds will help to purchase LLC interests directly from Shift4 Payments LLC. Shift4 Payments, LLC will use the proceeds from LLC interests for general corporate purposes.
Shift4 will not receive any proceeds from the sale of shares by the selling stockholders.
Separately, it also proposed to raise $500 million from senior convertible notes due 2027 in a private institutional offering.
The initial purchasers of the notes have a 13-day option to purchase additional notes up to $75 million.
The offering proceeds will serve general corporate purposes.
The notes will be redeemable on or after Aug. 6, 2024, if the last reported stock price exceeds 130% of the conversion price for a specified period.
Price action: FOUR shares closed higher by 4.16% at $91.68 on Tuesday.