Earlier this week
) announced an offer to sell new senior unsecured notes due 2018.
But the prices and other terms of issue were subject to
negotiations between Concur and the initial purchasers. On May
30, 2013 Concur announced its decisions regarding the prices and
The interest rate has been set at 0.50% per annum that will be
paid semi-annually in cash. The offer is set to expire on Jun 4,
2013. The company has also revised the size of the offering from
$350 million to $425 million of aggregate principal amount. The
over-allotment option that was earlier decided at $52.5 million
has also been increased to $63.75 million. The notes are
scheduled to mature on Jun 15, 2018.
It was decided earlier that these convertible notes would be
sold through private placement amongst institutional buyers. They
will be able to use their conversion rights prior to March 15,
2018. The initial conversion rate was set at 9.5377 shares of
common stock per $1,000 principal amount of notes. This rate
equates to a conversion price of approximately $104.85 per share,
which is at a premium of 30.14% to Concur's closing price of $
80.57 as on May 30, 2013.
Concur expects net proceeds of $413 million to $475 million
from the offering (excluding discounts and expenses) depending on
fulfillment of over-allotment options. Of this amount, Concur
intends to use $29.9 for repaying the convertible note hedge
Concur presently has a Zacks Rank #3 (Hold). Some other
companies in the industry worth considering at the moment are
Aspen Technology, Inc. (
Pegasystems Inc. (
SAP AG (
, all having a Zacks Rank #1 (Strong Buy).
ASPEN TECH INC (AZPN): Free Stock Analysis
CONCUR TECH INC (CNQR): Free Stock Analysis
PEGASYSTEMS INC (PEGA): Free Stock Analysis
SAP AG ADR (SAP): Free Stock Analysis Report
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