SS&C Technologies is launching a $1.0 billion convertible debt offering to refinance 2027 notes, while simultaneously initiating a $100.0 million share buyback to support its stock price.
SS&C plans a $1.0 billion convertible senior notes offering due 2031 to refinance its $2,000.0 million 5.500% Senior Notes maturing September 30, 2027, extending the maturity profile. Concurrently it will repurchase up to $100.0 million of shares and enter capped calls to reduce dilution, both supportive of the stock. The main offset is the added $1.0 billion of convertible debt and the possibility the credit amendments are not completed on the described terms.
SS&C Technologies Holdings announced a private placement of $1.0 billion in convertible senior notes due 2031 to refinance its $2,000.0 million 5.500% Senior Notes maturing in 2027. The company plans to use proceeds for capped call transactions and a $100.0 million share repurchase program to mitigate dilution.
The offering is part of refinancing transactions to redeem the $2,000.0 million of 5.500% Senior Notes maturing September 30, 2027, together with new term loans and an increased revolving credit facility.
Conversion would be settled in cash, shares or a combination at SS&C's election, and SS&C plans capped call transactions to reduce potential dilution, though that protection is subject to a cap.