Euronet Worldwide Inc. Proposed €600 Million Senior Unsecured Notes Rated 'BBB-'


NEW YORK (S&P Global Ratings) May 17, 2019--S&P Global Ratings today said it assigned its 'BBB-' debt rating on Euronet Worldwide Inc.'s (BBB-/Positive/--) proposed offering of €600 million ($672 million) in senior unsecured notes due 2026. The company expects to use the net proceeds from the offering for general corporate purposes, which may include repayment of indebtedness, including indebtedness under the company's unsecured revolving credit facility, and share repurchases. Pro forma for the transaction, we expect net debt to adjusted EBITDA to be about 2.0x to 2.5x, within our range for the current rating.
Our measure of debt includes $525 million of convertible notes due 2049, $340 million in operating lease liabilities, the new €600 million senior unsecured notes due 2026, and any amount drawn on the company's revolving credit facility. We net $200 million of surplus cash from our gross debt amount to arrive at our net debt number. We assume the remaining cash on the balance sheet is largely inaccessible to service debt because Euronet deploys it in its ATM network, and lowering the amount of cash in ATMs to repay debt would have some impact on profitability.
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