PAR Technology plummets after $250 mln convertible bonds sale

PAR Technology

13/03/2026 10:09

** Restaurant point-of-sale (POS) provider PAR Technology PAR.N shares down 20.3% to about a 6-yr low $12.63 after capital raise

** Co early Fri announced pricing private offering of $250 mln 4% convertible bonds (CBs) due 2031

** Initial conversion price of $19.02 is 20% premium to stock's last sale of $15.85

** PAR intends to use ~$207.5 mln of net proceeds to repurchase a portion of its 1.50% CBs due 2027, repurchase ~$33 mln of its shares to facilitate hedging by investors in the new CBs, remainder for general purposes

** It may also use some proceeds to acquire or invest in other companies, products, or technologies

** New Hartford, New York-based PAR has roughly $650 mln market cap

** PAR shares fell nearly 6% on Thurs, extending YTD decline to 56% as jitters about AI disruption have routed names in software sector

** Avg rating of 10 analysts is "buy"; median PT of $42 down from $60 a month ago, per LSEG

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

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