Shift4 Payments stabilizes after upsized $875 mln convertible stock sale

Shares of Shift4 Payments FOUR.N trading around the flat line on Thurs after payments processor secures capital raise for acquisition

Center Valley, Pennsylvania-based firm early Thurs announced pricing offering of 8.75 mln shares of mandatory convertible preferred stock at $100/sh

Preferred stock has annualized dividend yield of 6%

Unless earlier converted, preferred stock will automatically convert on May 1, 2028 into between 0.9780-1.2224 of FOUR shares, or up to 25% premium

FOUR shares on Weds closed down ~9% at $81.80 after co launched $750 mln mandatory to fund a portion of its $2.5 billion deal for retail-focused financial technology platform Global Blue GB.N and other purposes, including debt repayment

Goldman Sachs, Citigroup, Wells Fargo, Barclays, Citizens JMP and Santander are jt bookrunners for the public offering

As of Apr 28, co had ~88.6 mln shares outstanding (across A, B and C classes), per recent SEC filing, giving co current market cap of ~$7.3 bln

YTD, FOUR shares down ~21%