PAR Technology Corporation Announces $100 Million Convertible Senior Notes Offering
NEW HARTFORD, N.Y.–(BUSINESS WIRE)–PAR Technology Corporation (NYSE: PAR) has announced the pricing of a private offering of $100 million aggregate principal amount of 1.00% Convertible Senior Notes due 2030. The Notes will be sold to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933.
The Company has granted the initial purchaser an option to purchase up to an additional $15 million aggregate principal amount of Notes during a 13-day period beginning on the first date of issuance. The sale is expected to close on January 24, 2025, subject to certain conditions.
Key Terms of the Notes
- Maturity date: January 15, 2030
- Interest rate: 1.00% per year, payable semiannually
- Conversion option: Holders can convert Notes to shares of the Company’s common stock
- Initial conversion rate: 10.3089 shares per $1,000 principal amount
- Conversion premium: Approximately 32.5% above the last reported sale price on January 21, 2025
The Notes will be general unsecured obligations of the Company. Interest will be payable on January 15 and July 15 of each year, starting July 15, 2025. The Notes will be convertible at the holders’ option under certain circumstances before October 15, 2029, and at any time thereafter until maturity.
Use of Proceeds
PAR Technology estimates net proceeds of approximately $96.7 million from the offering (or $111.3 million with the additional $15 million option exercised). The Company intends to use the net proceeds to repay the $90 million principal amount outstanding of the Blue Owl Term Loan, with remaining proceeds used for general corporate purposes, including potential acquisitions or investments in complementary businesses.
Forward-Looking Statements
This press release contains forward-looking statements regarding the completion of the offering, use of proceeds, and other matters. These statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations. Factors that could cause such differences include risks related to closing the sale of Notes and management’s discretion in using proceeds, as discussed in PAR’s SEC filings.
For more information about PAR Technology Corporation, visit www.partech.com.
