PAR Technology Corporation Secures $100 Million in Convertible Notes

PARS Technology Corporation's $100 Million Convertible Notes Offering

PAR Technology Corporation (NYSE: PAR) has recently taken a significant step in its financial strategy by announcing the pricing of a private offering of $100 million in convertible senior notes. These 1.00% Convertible Senior Notes are set to mature in 2030. This strategic move is expected to fortify PAR’s financial position and fuel its ongoing commitment to technology innovation.

Details About the Offering

The offering comprises an aggregate principal amount of $100 million, which is classified as general unsecured obligations of the Company. Investors can expect interest at a rate of 1.00% per annum with payment scheduled semiannually starting mid-2025. This financial instrument is continually aimed at qualified institutional buyers, adhering to Rule 144A of the Securities Act, which opens doors for investment from reliable financial entities.

Conversion Features for Investors

One of the notable features of these notes is their convertibility. Investors can convert their notes into shares of PAR’s common stock, provided they adhere to specified conditions. The initial conversion rate stands at approximately 10.3089 shares for every $1,000 principal amount of notes. This translates to a conversion price of around $97.00 per share, which reflects a conversion premium of about 32.5% compared to the company's last selling price.

Redemption and Use of Proceeds

Redemption options are also on the table, allowing the Company to redeem the notes starting January 20, 2028, under specific conditions. Each strategy around the timing of these financial moves demonstrates PAR's careful planning. Additionally, the funds raised through this offering—approximately $96.7 million after expenses—are aimed predominantly at repaying a significant $90 million outstanding term loan. Remaining proceeds will be designated for general corporate activities and potentially for acquiring new complementary technologies or ventures.

Implications for PAR Technology Corporation

With this offering, PAR Technology Corporation is poised to leverage its solidified financial base to explore innovative solutions that would enhance customer experiences across various sectors. The investment into technology solutions has been part of PAR’s legacy, enhancing how businesses interact and engage with their customers. As technology continues to evolve, the backing of this offering positions PAR firmly at the forefront of the industry.

Commitment to Innovation

Having served the foodservice and retail industries for over 40 years, PAR Technology Corporation has carved out a reputation as a pioneer of technological advancements. Its solution suite is designed to facilitate seamless interactions in foodservice, retail, and hospitality sectors. By utilizing proceeds from this offering effectively, PAR is on track to maintain its competitive edge and commitment to innovation, reinforcing its operational framework and enhancing customer engagement.

Frequently Asked Questions

What is the purpose of PAR's $100 million offering?

The offering aims to strengthen PAR's financial position, pay down existing debt, and support corporate growth initiatives.

Who is eligible to purchase the Notes?

The Notes are offered to qualified institutional buyers as per Rule 144A under the Securities Act.

When do the Notes mature?

The Convertible Senior Notes will mature on January 15, 2030, unless converted earlier.

What is the initial conversion rate for the Notes?

The initial conversion rate is set at 10.3089 shares of PAR's common stock per $1,000 principal amount of Notes.

How will PAR use the proceeds from this offering?

The proceeds will primarily be used to repay existing loans and for general corporate purposes, including potential acquisitions.

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