WELLINGTON: Xero Limited has launched an offering of US$600 million senior unsecured convertible notes due 2025 to be issued by its wholly-owned subsidiary, Xero Investments Limited, and guaranteed by Xero.
Xero CEO Steve Vamos said: “This announcement represents the next step in our ongoing program to optimise Xero’s financial structure as we continue to execute our strategic priorities.”
It is intended that the Notes will be listed on the Official List of the Singapore Exchange Securities Trading Limited (SGX-ST).
Conversion of the Notes will be cash settled unless the Issuer elects to physically settle the conversion by having Xero issue ordinary shares to the relevant Noteholders.
After deduction of commissions, professional fees, other administrative expenses, and funding the costs of the call option transactions, it is intended that the net proceeds will be used to repurchase the Existing Notes; for potential acquisitions and strategic investments; and for general corporate purposes.
Xero CFO Kirsty Godfrey-Billy said: “The new offering, combined with the restructuring of our existing convertible note liability, will benefit shareholders and provide Xero with additional financial flexibility to pursue strategic investments, and deliver ongoing innovation and support of our customers and partners.”
Goldman Sachs International and Morgan Stanley & Co. International plc are acting as Joint Lead Managers (JLMs) on the Offering.
Xero is a cloud-based accounting software platform for small businesses with 2.45 million subscribers globally. Through Xero, small business owners and their advisors have access to real-time financial data any time, anywhere and on any device. Xero offers an ecosystem of over 800 third-party apps and 200 plus connections to banks and other financial partners.
In 2020, Xero was included in the Bloomberg Gender-Equality Index and recognised by IDC MarketScapeas a leader in its worldwide SaaS and cloud-enabled small business finance and accounting applications vendor assessment.
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