Pitney Bowes has commenced cash tender offers to purchase up to $50 million in aggregate principal amount of two outstanding debt securities as the company looks to retire a portion of its longer-dated obligations using cash on hand. The tender offers cover Pitney Bowes’ 6.70% Notes due 2043 and its 5.250% Medium-Term Notes due 2037.
The company has established a maximum aggregate tender amount of $50 million, although it retains the right to increase or decrease that amount subject to applicable law.
The 2043 Notes have approximately $349.3 million in aggregate principal amount outstanding and carry the highest acceptance priority.
Pitney Bowes is offering $22 for each $25 principal amount of the 2043 Notes tendered and accepted.
The 2037 Notes have approximately $31.1 million in aggregate principal amount outstanding and carry the second acceptance priority.
For those notes, Pitney Bowes is offering $850 for each $1,000 principal amount tendered and accepted.
In addition to the applicable tender consideration, holders whose notes are accepted will receive accrued and unpaid interest through, but not including, the settlement date.
The tender offers are scheduled to expire at 5 p.m. New York City time on September 18, 2026, unless Pitney Bowes extends or terminates them earlier.
Holders may withdraw validly tendered notes at or before 5 p.m. New York City time on September 10, unless the withdrawal deadline is extended.
Pitney Bowes expects the settlement date to occur promptly after expiration and currently anticipates settlement on September 22, assuming all applicable conditions have been satisfied or waived.
The amount of each series ultimately purchased will depend on the $50 million maximum tender amount and the stated acceptance priority levels.
The 2043 Notes will be accepted before the 2037 Notes if aggregate tenders exceed the amount Pitney Bowes elects to purchase.
The company said it currently intends to finance the tender purchases with cash on hand.
The offers are not subject to any minimum tender condition.
Pitney Bowes can amend, extend, terminate or withdraw the tender offers in accordance with the terms of its offer documents.
The company has also agreed to pay qualifying retail brokers a soliciting dealer fee of $0.125 for each $25 principal amount of 2043 Notes and $5 for each $1,000 principal amount of 2037 Notes validly tendered by eligible beneficial holders with aggregate principal amounts of $250,000 or less.
BofA Securities is serving as dealer manager for the tender offers.
Global Bondholder Services Corporation is serving as information agent and tender agent.
Pitney Bowes provides digital shipping, mailing and financial services to businesses and government customers, including more than 90% of the Fortune 500.
