Pitney Bowes dips on planned $200 mln convertible bond offering

Pitney Bowes

05/08/2025 22:20

** Pitney Bowes' PBI.N shares down 2.5% to $10.90 in extended trading as shipping and mailing firm plans to raise capital

** Stamford, Connecticut-based co announces private offering of $200 mln 5-yr convertible bonds

** It says expects to use net proceeds for general purposes and "strategic investments that align with the Company’s capital strategy", including business reinvestments, debt repayment or refinancing, and other initiatives designed to reduce leverage

** It also intends to use portion of proceeds to pay cost of capped calls, derivative transactions to offset dilution, and expects to use up to $75 mln to repurchase its stock

** Co has ~$1.9 bln market cap, per LSEG data

** PBI shares on Tues closed down 3% at $11.18, trimming YTD gain to ~54%

** In May, PBI named Kurt Wolf, head of activist investor Hestia Capital Management, as new CEO, saying Wolf to help conduct strategic review for the co for the rest of 2025

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

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