PAR Technology Corporation (NYSE: PAR) has revealed its intention to issue $100 million in Convertible Senior Notes, maturing in 2030. The offering will be conducted privately among qualified institutional buyers, with an option for initial purchasers to acquire an additional $15 million. The company plans to utilize the funds to refinance its existing debt.
The Notes themselves will constitute unsecured obligations, with interest payments made semi-annually. They will be convertible, at the holder’s discretion, into cash, shares of PAR stock, or a combination of both. PAR intends to use the proceeds from the offering to fully repay its $90 million Blue Owl Term Loan, covering principal, accrued interest, and any prepayment premiums. Any remaining funds will be allocated for general corporate purposes and potential acquisitions.
The terms of the Notes include certain restrictions. They will not be redeemable before January 20, 2028. After this date, PAR has the option to redeem the Notes at 100% of their principal value, plus any accrued interest, if the stock price maintains at least 130% of the conversion price for a specified period. The definitive terms, including the interest rate and the conversion rate, will be determined based on prevailing market conditions at the time of pricing.
This strategic move allows PAR to potentially replace a higher-interest loan with debt that could become equity, giving them increased financial flexibility. This can provide more competitive interest rates to the company and attract investors.
PAR Technology has been at the forefront of technology innovation in foodservice for over four decades. Their suite of software and hardware solutions serves a diverse range of hospitality and retail clients across more than 110 countries.
