ENGLEWOOD, Colo., May 27 /PRNewswire-FirstCall/ -- CSG Systems
(Nasdaq: CSGS) today announced the pricing of its offering of $200 million of
2 1/2 % Senior Subordinated Convertible Contingent Debt Securities due 2024
(the "Securities") in a private placement to qualified institutional buyers
pursuant to exemptions from the registration requirements of the Securities
Act of 1933. The offering is expected to close on June 2, 2004, subject to
customary closing conditions. CSG Systems has granted the initial purchasers
of the Securities an option to purchase up to an additional $30 million
aggregate principal amount of the Securities.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020627/CSGSLOGO)
The Securities will be convertible into shares of CSG Systems common stock
at an initial conversion rate of 37.3552 shares per $1,000 principal amount of
Securities (which is equivalent to a conversion price of approximately
$26.77 per share), only under certain circumstances. CSG Systems may redeem
the Securities beginning on June 20, 2011. On each of June 15, 2011, 2016 and
2021, or upon the occurrence of certain designated events, the holders of the
Securities may require CSG Systems to repurchase the Securities.
CSG Systems intends to use up to $40 million of the net proceeds of this
offering for a concurrent repurchase of common stock, and the remainder of the
net proceeds and a portion of the company's available cash, cash equivalents
and short-term investments for the repayment of outstanding debt. As a result
of the prepayment and termination of the current credit facility, the company
will incur a one-time, non-cash charge of approximately $6.6 million
associated with the write-off of the deferred financing costs associated with
the outstanding debt.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy securities and shall not constitute an offer,
solicitation or sale in any jurisdiction in which such offer, solicitation or
sale is unlawful. The Securities and the common stock issuable upon
conversion of the Securities have not been registered under the Securities Act
of 1933 or applicable state securities laws and, unless so registered, may not
be offered or sold in the United States except pursuant to an exemption from
the registration requirements of the Securities Act and applicable state
securities laws.
SOURCE CSG Systems
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Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/20020627/CSGSLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
Company News On-Call:
http://www.prnewswire.com/comp/126879.html
CONTACT:
Liz Bauer, Senior Vice President, IR and
Corporate Communications of CSG Systems International, Inc.,
+1-303-804-4065, liz_bauer@csgsystems.com
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