PARSONS CORP (PSN): debt financing — Parsons issues $800M 2.625% convertible notes due 2029; board approves $100M stock buyback

PARSONS CORP

$800M aggregate principal 2.625% Convertible Senior Notes due 2029; initial conversion price ~$94.11 (25% premium over last sale).
Capped call transactions cost ~$88.4M to offset dilution; cap price $131.7575 (75% premium).
Board authorized $100M stock repurchase and removed $25M quarterly cap; also plans to repurchase some outstanding 0.25% 2025 notes.
Proceeds used for capped call cost, repurchases of existing notes and common shares, and general corporate purposes.

item 1.01 item 2.03 item 3.02 item 7.01 item 8.01 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

PARSONS CORP incurred convertible notes of $800.0 million aggregate principal amount with BofA Securities, Inc., Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC at 2.625% per year maturing March 1, 2029.

Instrument: convertible notes
Principal: $800.0 million aggregate principal amount
Counterparty: BofA Securities, Inc., Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC
Rate: 2.625% per year
Maturity: March 1, 2029
Event: incurrence

Exact text from the filing

$100.0 million aggregate principal amount of Notes on the same terms and conditions. The Initial Purchasers exercised their option in full on February 22, 2024 and a total of $800.0 million aggregate principal amount of Notes were issued pursuant to the Purchase Agreement on February 26, 2024. The Purchase Agreement includes customary representations, warranties and

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

PARSONS CORP entered into Indenture with U.S. Bank Trust Company, National Association (effective 2024-02-26).

Action: entry
Agreement: notes offering
Counterparty: U.S. Bank Trust Company, National Association
Effective: 2024-02-26

Exact text from the filing

On February 26, 2024, the Company entered into an indenture (the “ Indenture ”) governing the terms of the Notes, by and between the Company and U.S. Bank Trust Company, National Association, as trustee

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

PARSONS CORP entered into Purchase Agreement with BofA Securities, Inc., Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC valued at $700.0 million aggregate principal amount of its 2.625% Convertible Senior Notes due 2029 (effective 2024-02-21).

Action: entry
Agreement: underwriting
Counterparty: BofA Securities, Inc., Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC
Value: $700.0 million aggregate principal amount of its 2.625% Convertible Senior Notes due 2029
Effective: 2024-02-21

Exact text from the filing

On February 21, 2024, the Company entered into a purchase agreement (the “ Purchase Agreement ”) with BofA Securities, Inc., Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC as representatives of the several initial purchasers named therein (collectively, the “Initial Purchasers”), pursuant to which the Company agreed to issue and sell $700.0 million aggregate principal amount of its 2.625% Convertible Senior Notes due 2029

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299 debt financings filed in the last 30 days. Browse all debt financings →

PARSONS CORP filing history →

Source: SEC EDGAR

accession 0001193125-24-046496

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