Benzinga | Apr 7, 2021 08:21AM EDT

Verint Systems Raises $275M Via Upsized Private Institutional Convertible Debt

* Verint Systems Inc (NASDAQ: VRNT) has agreed to sell $275 million 0.25% convertible senior notes due 2026 in an upsized private institutional placement to raise $267 million in gross proceeds.

* The offering was upsized from the previous $250 million.

* The initial conversion price of $62.08 represents a 32.5% premium on the Apr. 6 closing price of $46.85.

* The company has entered into capped call transactions with certain financial institutions to offset the potential stock dilution from any note conversion. The capped call transactions' initial cap price is $100, representing a 113% premium to the Apr. 6 closing price.

* The notes will bear an annual interest rate of 0.25%, payable semi-annually in arrears. The notes will mature on Apr. 15, 2026.

* The offering proceeds will be used to pay for the capped call transactions. The company will utilize the remainder proceeds along with $200 million of its Series B convertible preferred stock issuance proceeds to repay obligations under its existing credit facility, interest rate swap agreement, 1.06 million share buybacks, working capital, and other general corporate purposes.

* Verint Systems held cash and cash equivalent of $700 million as of Jan. 31, 2021.

* Price action: VRNT shares traded higher by 1.94% at $46.85 in the premarket session on the last check Wednesday.