Xerox Looking to Borrow Another $300 Million, Payback in 2030.

[jim]

Xerox Looking to Borrow Another $300 Million, Payback in 2030.
Xerox Holdings Corporation is set to raise funds through a new convertible note offering. 

Xerox Holdings Corporation Proposes New Convertible Notes Offering
Summary: Xerox Holdings Corporation, trading as NASDAQ: XRX, is preparing to launch a $300 million convertible senior notes offering. This offering is targeted at qualified institutional buyers, in accordance with Rule 144A under the Securities Act of 1933.

Utilization of Proceeds: The company plans to allocate the net proceeds from this offering primarily for: Financing the costs associated with capped call transactions / Refinancing portions of its existing debt.

Capped Call Transactions: In line with the notes’ pricing, Xerox is planning to engage in capped call transactions through private negotiations with select financial institutions. The goal of these transactions is to minimize the dilutive impact on Xerox’s common stock that could result from the conversion of the notes.

Conversion Details: Holders of the notes will have the option to convert their investment into:
Cash / Xerox’s common stock / Or a mix of both, subject to the company’s decision.

Interest Payments: Investors will receive interest payments on a semi-annual basis, paid in arrears.

Redemption Rights: Post-September 20, 2027, Xerox retains the right to redeem the notes, contingent upon specific predefined conditions.

Maturity: The notes are scheduled to reach maturity on March 15, 2030, marking the end of the investment term.

This strategic financial move indicates Xerox’s ongoing efforts to manage its capital structure and optimize its financial strategies. The convertible notes offering is poised to provide the company with the flexibility to meet its financial objectives while offering potential investors an opportunity to participate in Xerox’s growth.

[Author]

May 16, 2024 at 3:05 PM