i3 Verticals falls ahead of capital raise

i3 Verticals

12/02/2020 17:34

** i3 Verticals Inc  IIIV.O  down 9.4% at $31.91 as payments
processor looks to price exchangeable debt offering after the
close Weds
    ** Co offering privately $100 mln 5-yr exchangeable senior
notes  urn:newsml:reuters.com:*:nGNX48NqGF
    ** Intends to use portion of net proceeds to pay cost of
hedge transactions to help reduce potential common stock
dilution, remainder to pay down borrowings under its credit
facility
    ** Sole bookrunner BofA marketing notes with 0.75%-1.25%
coupon, 27.5%-32.5% convertible premium
    ** After the bell Mon, co posted fiscal Q1 results beat and
disclosed during earnings call it signed several term sheets for
potential acquisitions  urn:newsml:reuters.com:*:nGNX6rT08l
    ** 4 of 5 brokerages subsequently hiked their PTs, though
BTIG and D.A. Davidson both downgraded IIIV to "neutral" from
"buy" citing stock's recent strength; median PT is $36, per
Refinitiv
    ** Through Mon close, IIIV had risen 28% YTD; during that
session, stock touched intraday record high of $37.85
    ** i3 Verticals raised ~$99 mln in Jun 2018 IPO priced at
$13, and raised ~$118 mln one year later in follow-on priced at
$22.75

 (Reporting by Lance Tupper)
 ((lance.tupper.tr.com@reuters.net
lance.tupper@tr.com 646-223-5017))