Repay tumbles after $260 mln convertible debt deal priced

Repay Holdings

03/07/2024 13:30

** Repay Holding's  RPAY.O  shares down 14.8% premarket to
$8.70, over 4-mth low, after fintech firm's capital raise to pay
down some debt
    ** Atlanta-based payment solutions provider late Tues
announced pricing of private offering of $260 mln 2.875%
convertible bonds (CBs) due 2029
    ** Initial conversion price of $13.02 represents 27.5%
premium to stock's last close of $10.21
    ** Repay plans to use ~$35 mln of net proceeds to pay for
capped calls, remainder to purchase portion of outstanding 0%
CBs due 2026
    ** Also, co expects to use ~$40 mln to repurchase about 3.9
mln shares of its common stock
    ** Through Tues, RPAY shares up ~20% YTD, giving co market
cap of ~$994 mln, per LSEG data
    ** 6 of 10 analysts rate RPAY "strong buy" or "buy", rest
"hold" with median PT of $12.50 - LSEG

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))