Pitney Bowes Inc. announced on August 5, 2025, its intention to offer $200 million aggregate principal amount of 1.50% convertible senior notes due 2030 in a private placement. The initial purchasers have an option to buy an additional $30 million aggregate principal amount of the notes.
The company plans to use a portion of the net proceeds to fund capped call transactions, which are expected to reduce potential dilution to common stock upon conversion. Additionally, Pitney Bowes expects to use up to $75 million of the net proceeds to repurchase shares of its common stock concurrently with the pricing of the offering.
The remaining net proceeds are intended for general corporate purposes and other strategic investments, including reinvestments in the business, repayment or refinancing of debt, and initiatives to reduce leverage or average borrowing cost. The initial conversion price is approximately $14.25 per share, representing a 27.5% premium over the August 5, 2025, closing price of $11.18 per share.
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