February 2024
Case Study

Global
Payments

Global Payments is a leading provider of electronic transaction processing, information systems and services to the financial, corporate, government and merchant communities worldwide.

Transaction Terms
Offering Size
$2B ($1.75B Base + $250MM Greenshoe)
Security
1.50% Convertible Senior Notes
Maturity
2031 (7 years)
Conversion Premium
20%
Capped Call
Up 75%
Use of Proceeds
$185.1MM concurrent share repurchase; repayment of commercial paper
Execution
144A, one-day marketed
$2B
Inaugural 144A convertible
notes offering
Lowest
IG-rated CB coupon
at the time since 2021 at this size
-2%
Minimal stock move on deal day
vs. S&P 500
Situation Overview

An inaugural convertible
in size

Global Payments engaged HudsonWest as its financial advisor in connection with its inaugural 144A convertible notes offering and associated capped call transactions, following HudsonWest's debut role as capped call advisor in the 2022 Silver Lake private placement.

As an investment-grade issuer, achieving the tightest possible coupon while minimizing stock price impact on deal day required precise structuring of the investor book and concurrent share repurchase.

HudsonWest’s Role

Structuring for
optimal execution

01
Lowest IG Coupon Since 2021

HudsonWest led the structuring and documentation processes to help Global Payments achieve the lowest coupon for any investment-grade rated convertible bond, as well as the lowest coupon for any $2B+ issuance size, since 2021, at the time.

02
Optimal Investor Mix

With HudsonWest guidance, Global Payments achieved an optimal mix of high-quality long-only investors and hedge funds, which resulted in the stock trading down less than 2% on deal day vs. the S&P 500.

03
Concurrent Share Repurchase

Global Payments executed a $185.1MM share repurchase concurrently with the offering, sending a clear signal of management confidence and helping offset any technical selling pressure from hedge fund buyers.

04
Interest Expense Savings

Global Payments used a portion of proceeds to pay down higher-cost commercial paper, resulting in substantial interest expense savings and GAAP EPS accretion.

Other Global Payments Transactions
August 2022
$1.5B Post-Issuance Capped Call
View Case Study →
October 2024
$600MM ASR + Up to $100MM Open Market Repurchase
View Case Study →
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