Benzinga | Mar 2, 2021 07:01AM EST

Ceridian Seeks To Raise $500M Via Institutional Debt Offering To Refinance Existing Debt

Human capital management software company Ceridian HCM Holding Inc (NYSE CDAY) plans to raise $500 million via the sale of senior unsecured convertible notes due 2026 in a private institutional offering. The purchasers have 13 days to procure additional notes up to $75 million.

* Ceridian plans to enter into privately negotiated capped call transactions with one or more of the initial purchasers to reduce potential stock dilution upon any note conversion.

* The offering proceeds will be partly utilized to pay the cost of the capped transactions. The remainder of the proceeds will be used to repay the $295 million principal amount under its senior credit facilities, outstanding interest, and general corporate purposes.

* Ceridian's total debt was $667.8 million as of December 31, 2020.

* CDAY stock has gained 21% in the last six months.

* Price action: CDAY shares closed 3.56% higher at $92.92 on Monday.