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Pitney Bowes Announces Cash Tender Offers and Consent Solicitation
The terms and conditions of the Tender Offers and the Consent Solicitation are described in an Offer to Purchase and Consent Solicitation Statement dated
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Dollars per $1,000 Principal Amount of Notes |
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Series of Notes(3) |
CUSIP |
Aggregate Principal Amount Outstanding |
Waterfall Series Tender Cap |
Acceptance Priority Level |
Tender Offer Consideration(1) |
Early Tender Premium (1) |
Total Consideration (1)(2) |
3.375% Notes due 2021 |
724479AK6 |
$600,000,000 |
None. |
1 |
$1,005.00 |
$30.00 |
$1,035.00 |
3.875% Notes due 2022 |
724479AL4 |
$400,000,000 |
$250,000,000 |
2 |
$1,020.00 |
$30.00 |
$1,050.00 |
4.700% Notes due 2023 |
724479AN0 |
$400,000,000 |
$125,000,000 |
3 |
$997.50 |
$30.00 |
$1,027.50 |
4.625% Notes due 2024 |
724479AJ9 |
$500,000,000 |
$125,000,000 |
4 |
$962.50 |
$30.00 |
$992.50 |
(1) Per
(2) Includes the Early Tender Premium (as defined herein) for Notes validly tendered prior to the Early Tender Time (and not validly withdrawn) and accepted for purchase by the Company.
(3) Interest rates included herein represent the respective initial interest rate of each series of Notes subject to the Tender Offers. Due to the occurrence of certain triggering events since they were originally issued, the 3.375% Notes, 3.875% Notes and 4.700% Notes currently bear interest at a rate of 4.125% per annum, 4.625% per annum and 5.200% per annum, respectively.
In connection with the Tender Offer for the 3.375% Notes, the Company has commenced a solicitation of consents (the “Consent Solicitation”) from holders of the 3.375% Notes to amend certain provisions (the “Proposed Amendments”) of the senior debt indenture dated
Each of the Tender Offers and the Consent Solicitation will expire at
Upon the terms and subject to the conditions of the Tender Offers and the Consent Solicitation, the consideration for each
In addition to the Tender Offer Consideration or the Total Consideration, as applicable, all holders of Notes accepted for purchase pursuant to the Tender Offers will, on the Early Settlement Date or the Final Settlement Date (each as defined below), as applicable, also receive accrued and unpaid interest on those Notes from the last interest payment date with respect to those Notes to, but not including, the Early Settlement Date or the Final Settlement Date, as applicable.
Subject to compliance with applicable law, the Company may (i) extend or otherwise amend the Early Tender Time or the Expiration Time with respect to any Tender Offer and, with respect to the 3.375% Notes only, the Consent Solicitation or (ii) increase or decrease the Aggregate Maximum Principal Amount and/or any Waterfall Series Tender Cap, or add a tender cap for the 3.375% Notes, in each case without extending the Withdrawal Deadline for such Tender Offer or the Consent Solicitation or otherwise reinstating withdrawal or revocation rights of Holders for such Tender Offer or the Consent Solicitation. In addition, the Early Tender Time with respect to a Tender Offer and, with respect to the 3.375% Notes only, the Consent Solicitation can be extended independently of the Early Tender Time or Withdrawal Deadline with respect to any other Tender Offer (provided; however, that, with respect to the 3.375% Notes only, any extension of the Early Tender Time or the Withdrawal Deadline will result in a corresponding extension for the Consent Solicitation). There can be no assurance that the Company will change the Aggregate Maximum Principal Amount, the Waterfall Series Tender Caps, or add a tender cap for the 3.375% Notes. If the Company changes the Aggregate Maximum Principal Amount, any Waterfall Series Tender Cap, or adds a tender cap for the 3.375% Notes, it does not expect to extend the Withdrawal Deadline, subject to applicable law.
The Company reserves the right, in its sole discretion, at any point following the Early Tender Time and before the Expiration Time, to accept for purchase any Notes validly tendered (and, with respect to the 3.375% Notes only, any consents that have been validly delivered) at or prior to the Early Tender Time (the date of such acceptance and purchase, the “Early Settlement Date”), subject to the Aggregate Maximum Principal Amount, the Acceptance Priority Levels, the Waterfall Series Tender Caps (with respect to the Waterfall Notes only), and proration as described herein. The Early Settlement Date will be determined at the Company’s option and is currently expected to occur on
Subject to the Aggregate Maximum Principal Amount, the Waterfall Series Tender Caps (with respect to the Waterfall Notes only), and proration as described herein, all Notes validly tendered at or before the Early Tender Time having a higher Acceptance Priority Level will be accepted before any Notes validly tendered at or before the Early Tender Time having a lower Acceptance Priority Level are accepted, and all Notes validly tendered after the Early Tender Time having a higher Acceptance Priority Level will be accepted before any Notes validly tendered after the Early Tender Time having a lower Acceptance Priority Level are accepted in the Tender Offers. Accordingly, subject to the Waterfall Series Tender Caps (with respect to the Waterfall Notes only), all validly tendered Notes with an Acceptance Priority Level 1 will be accepted before any validly tendered Notes with an Acceptance Priority Level 2, and so on, until the Aggregate Maximum Principal Amount is allocated. Once all Notes validly tendered in a certain Acceptance Priority Level have been accepted, Notes from the next Acceptance Priority Level may begin to be accepted. If the remaining portion of the Aggregate Maximum Principal Amount and the Waterfall Series Tender Caps (with respect to the Waterfall Notes only), as applicable, is adequate to purchase some but not all of the aggregate principal amount of Notes validly tendered within the next Acceptance Priority Level, Notes validly tendered in that Acceptance Priority Level will be accepted on a pro rata basis, based on the aggregate principal amount of Notes validly tendered with respect to that Acceptance Priority Level, and no Notes with a lower Acceptance Priority Level will be accepted.
Notwithstanding the foregoing, even if the Tender Offers are not fully subscribed as of the Early Tender Time, subject to the Aggregate Maximum Principal Amount and the Waterfall Series Tender Caps (with respect to the Waterfall Notes only), Notes validly tendered at or before the Early Tender Time will be accepted for purchase in priority to other Notes validly tendered after the Early Tender Time, even if such Notes validly tendered after the Early Tender Time have a higher Acceptance Priority Level than Notes validly tendered prior to the Early Tender Time. In addition, if the aggregate principal amount of Notes validly tendered at or before the Early Tender Time exceeds the Aggregate Maximum Principal Amount, the Company will not accept for purchase any Notes tendered after the Early Tender Time. If the aggregate principal amount of any series of Waterfall Notes validly tendered at or before the Early Tender Time exceeds the applicable Waterfall Series Tender Cap, the Company will not accept for purchase any Notes of such series tendered after the Early Tender Time.
Any Holder who tenders 3.375% Notes pursuant to the 3.375% Notes Tender Offer must also concurrently deliver a consent to the Proposed Amendments pursuant to the Consent Solicitation. Holders who validly tender their 3.375% Notes pursuant to the 3.375% Notes Tender Offer with respect to the 3.375% Notes, will be deemed to have delivered their consents for the 3.375% Notes pursuant to the Consent Solicitation by virtue of such tender. Holders may not deliver consents with respect to the 3.375% Notes without also tendering their 3.375% Notes in the 3.375% Notes Tender Offer. A Holder may not revoke a consent with respect to the 3.375% Notes without withdrawing the previously tendered 3.375% Notes to which such consent relates. A valid withdrawal of tendered Notes prior to the Withdrawal Deadline will constitute the concurrent valid revocation of such Holder’s related consent.
Acceptance for tenders of any series of Notes may be subject to proration as to such series if the aggregate principal amount of the Notes of such series would cause the Aggregate Maximum Principal Amount to be exceeded. Acceptance for tenders of any series of Waterfall Notes may also be subject to proration if the aggregate principal amount of such series of Waterfall Notes exceeds the applicable Waterfall Series Tender Cap. If the Tender Offers are fully subscribed as of the Early Tender Time, Holders who validly tender Notes after the Early Tender Time will not have any of their Notes accepted for purchase.
The Tender Offers are not conditioned upon a minimum amount of Notes of any series, or a minimum amount of Notes of all series, being tendered, or upon obtaining the Requisite Consents (as defined below). The adoption of the Proposed Amendments with respect to the Indenture Documents and the 3.375% Notes is, however, conditioned upon, among other things, obtaining consents of Holders of a majority in aggregate principal amount of the outstanding 3.375% Notes to the Proposed Amendments (the “Requisite Consents”) with respect to the Indenture Documents and such Notes. In the event of any proration of the 3.375% Notes, any delivered Consents will be null and void and the Requisite Consents will be deemed not to have been obtained with respect to such Notes.
None of the Company, its officers, the dealer managers, the solicitation agents, the depositary, the information agent or the trustees with respect to the Notes, or any of the Company’s or their respective affiliates, makes any recommendation that holders tender or refrain from tendering all or any portion of the principal amount of their Notes, and no one has been authorized by any of them to make such a recommendation. Holders must make their own decision as to whether to tender their Notes, deliver their consents and, if so, the principal amount of Notes to which action is to be taken. The Tender Offers and the Consent Solicitation are made only by the Offer to Purchase and Consent Solicitation Statement. This press release is neither an offer to purchase nor a solicitation of an offer to sell any notes in the Tender Offers. The Tender Offers and the Consent Solicitation are not being made to holders of Notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. In any jurisdiction in which the Tender Offers or the Consent Solicitation are required to be made by a licensed broker or dealer, the Tender Offers and the Consent Solicitation will be deemed to be made on behalf of the Company by the dealer managers, solicitation agents or one or more registered brokers or dealers that are licensed under the laws of such jurisdiction.
The Company and its affiliates may from time to time, after completion of the Tender Offers and the Consent Solicitation, purchase additional Notes or other debt securities in the open market, in privately negotiated transactions, through tender offers, exchange offers or otherwise, or the Company may redeem the Notes or other debt securities pursuant to their terms. Any future purchases, exchanges or redemptions may be on the same terms or on terms that are more or less favorable to Holders of Notes than the terms of the Tender Offers. Any future purchases, exchanges or redemptions by the Company and its affiliates will depend on various factors existing at that time. There can be no assurance as to which, if any, of these alternatives (or combinations thereof) the Company and its affiliates may choose to pursue in the future.
This press release is for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell the Notes. The Tender Offers are being made solely by means of the Offer to Purchase and Consent Solicitation Statement. The Tender Offers are void in all jurisdictions where they are prohibited. In those jurisdictions where the securities, blue sky or other laws require the Tender Offers to be made by a licensed broker or dealer, the Tender Offers will be deemed to be made on behalf of the Company by the dealer managers or one or more registered brokers or dealers licensed under the laws of such jurisdictions.
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Forward Looking Statements
This press release includes “forward-looking statements” about the Company’s intention to purchase the Notes and solicit consents in the Offer to Purchase and Consent Solicitation Statement. Any forward-looking statements contained in this press release may change based on various factors. These forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties and actual results could differ materially. Words such as “estimate,” “target,” “project,” “plan,” “believe,” “expect,” “anticipate,” “intend” and similar expressions may identify such forward-looking statements.
Although the Company believes that the expectations reflected in its forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of its forward-looking statements. The Company’s future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, such as those disclosed or incorporated by reference in the Company’s filings with the
View source version on businesswire.com: https://www.businesswire.com/news/home/20200210005436/en/
Source:
Bill Hughes
Chief Communications Officer
Pitney Bowes
203-351-6785
William.hughes@pb.com
Adam David
Investor Relations
Pitney Bowes
203-351-7175
Adam.David@pb.com