Benzinga | Jul 21, 2021 06:43AM EDT

Shift4 Payments Seeks To Raise $158M Via Secondary Share Sale, $500M Via Private Senior Convertible Note Offering

* Shift4 Payments Inc (NYSE:FOUR) proposed to offer 1.8 million shares in a secondary public offering. Certain entities associated with Searchlight Capital Partners, L.P. plans to offer 5.2 million shares.

* The estimated gross proceed is $157.72 million based on Monday's closing price of $88.02.

* The underwriters have a 30-day option to purchase additional shares up to 1.05 million.

* The offering proceeds will help to purchase LLC interests directly from Shift4 Payments LLC. Shift4 Payments, LLC will use the proceeds from LLC interests for general corporate purposes.

* Shift4 will not receive any proceeds from the sale of shares by the selling stockholders.

* Separately, it also proposed to raise $500 million from senior convertible notes due 2027 in a private institutional offering.

* The initial purchasers of the notes have a 13-day option to purchase additional notes up to $75 million.

* The offering proceeds will serve general corporate purposes.

* The notes will be redeemable on or after Aug. 6, 2024, if the last reported stock price exceeds 130% of the conversion price for a specified period.

* Price action: FOUR shares closed higher by 4.16% at $91.68 on Tuesday.