BUZZ-Pitney Bowes dips on planned $200 mln convertible bond offering
Pitney Bowesshares fell 2.5% to $10.90 after the company announced a $200 million private offering of 5-year convertible bonds. The funds will be used for general purposes, strategic investments, debt repayment, and stock repurchases. The company's market cap is approximately $1.9 billion, and shares closed down 3% at $11.18, reducing the year-to-date gain to about 54%. Recently, Kurt Wolf was appointed as CEO to lead a strategic review through 2025.
Pitney Bowes’ (PBI.N) shares down 2.5% to $10.90 in extended trading as shipping and mailing firm plans to raise capital Stamford, Connecticut-based co announces private offering of $200 mln 5-yr convertible bonds
It says expects to use net proceeds for general purposes and “strategic investments that align with the Company’s capital strategy”, including business reinvestments, debt repayment or refinancing, and other initiatives designed to reduce leverage
It also intends to use portion of proceeds to pay cost of capped calls, derivative transactions to offset dilution, and expects to use up to $75 mln to repurchase its stock
Co has ~$1.9 bln market cap, per LSEG data
PBI shares on Tues closed down 3% at $11.18, trimming YTD gain to ~54% In May, PBI named Kurt Wolf, head of activist investor Hestia Capital Management, as new CEO, saying Wolf to help conduct strategic review for the co for the rest of 2025 (Lance Tupper is a Reuters market analyst. The views expressed are his own)
