Shift4 Payments stabilizes after upsized $875 mln convertible stock sale

Global Blue Holding

01/05/2025 17:04

** Shares of Shift4 Payments FOUR.N trading around the flat line on Thurs after payments processor secures capital raise for acquisition

** Center Valley, Pennsylvania-based firm early Thurs announced pricing offering of 8.75 mln shares of mandatory convertible preferred stock at $100/sh

** Preferred stock has annualized dividend yield of 6%

** Unless earlier converted, preferred stock will automatically convert on May 1, 2028 into between 0.9780-1.2224 of FOUR shares, or up to 25% premium

** FOUR shares on Weds closed down ~9% at $81.80 after co launched $750 mln mandatory to fund a portion of its $2.5 billion deal for retail-focused financial technology platform Global Blue GB.N and other purposes, including debt repayment

** Goldman Sachs, Citigroup, Wells Fargo, Barclays, Citizens JMP and Santander are jt bookrunners for the public offering

** As of Apr 28, co had ~88.6 mln shares outstanding (across A, B and C classes), per recent SEC filing, giving co current market cap of ~$7.3 bln

** YTD, FOUR shares down ~21%

(Reporting by Lance Tupper in New York and Arasu Kannagi Basil in Bengaluru)
(Lance Tupper s a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))