Tyler Technologies, Inc. [NYSE: TYL] declared the pricing of its offering of $525 million total principal sums of 0.25% convertible senior notes due 2026 in a private offering. The firm has offered the notes to the eligible institutional purchasers following Rule 144A under the Securities Act of 1933.
TYL disclosed that the offering and sale of Notes are projected to resolve on March 9, 2021, dependent on certain execution conditions. Furthermore, TYL has also provided the opportunity to the initial buyers of the Notes a 13-day option to buy up to an extra $75,000,000 total principal sum of Notes.
Shares of Tyler Technologies plunged down 13.58% as it lost -59.64 during the trading session of Thursday. The firm has last closing price of $379.56. In the past 52-weeks of trading, the firm’s share has low range of $247.22 and a high range of $479.79. TYL share surged 53.53% from its 52-week low and plunged -20.89% from its 52-week high. Tyler Technologies has total market capitalization of $15.33 billion at the time of writing.
It has been disclosed by the firm that the Seniors Notes are unsecured liability of Tyler and will assume the interest at a rate of 0.25% per annum, due semi-yearly in debts on March 15 and September 15 of each year, commencing on September 15, 2021. The maturity dates of the Notes will be March 15, 2026 if not earlier bought back, exchanged, or transferred.
The owner of the Notes will have the authority to transform their Notes only upon the incidence of particular happenings before September 15, 2025. The owners of the Notes may transform their Notes at any time at their vote until the execution of business on the second planned trading day just prior to the maturity date from and involving September 15, 2025.
TYL will resolve transformations of the Notes either completely in cash or in a mixture of cash and shares of its ordinary shares, at Tyler’s election. The firm is planning to set the initial transformation rate of the Notes as 2.0266 shares of ordinary shares per $1,000 principal sum of Notes.
Tyler is anticipating a profit of $516.6 million prior to the subtraction of markdowns and other costs of the offering. TYL is planning to spend the net profit from the offering to finance a part of the buying price of its earlier disclosed buying of NIC Inc.