JWCA advises PAR Technology on its $115mm convertible transaction, the first convertible offering of 2025

January 2025 | read press release

Transaction Background

PAR Technology Corporation (“PAR” or the “Company”) successfully raised $115mm (inclusive of greenshoe) in the convertible market at attractive terms (1.00% coupon and 32.5% conversion premium)

PAR’s objectives included:

• Refinance its outstanding more expensive Blue Owl Term Loan to lower cash interest expense

• Optimize the balance sheet to provide increased financial flexibility

The Company engaged J. Wood Capital Advisors to assist in the structuring, negotiation, documentation and execution of the transaction

JWCA provided extensive analysis on deal structuring and related items, including:

• Refinancing tactics and analysis

• Capital structure review

• Convertible structuring

• Convertible documentation to ensure maximum value and future efficiency/flexibility for the Company

• Shareholder messaging

JWCA provided advice, support and analysis throughout the execution process

Results

PAR’s convertible transaction was very well received by investors:

• The transaction was multiple times oversubscribed, reflecting strong investor interest and demand in the Company’s fourth convertible bond offering

• The 1.00% coupon and 32.5% conversion premium represented the issuer friendly end of both the marketed coupon and conversion premium range

PAR’s stock traded flat on the day of the offering compared to comparables trading down ~10%

This is J. Wood’s second advisory assignment for the Company after advising PAR on its convertible exchange in November 2024