Xero to sell US$600m zero coupon, 5-yr convertible notes

Wed, 25 Nov 2020

Xero has launched a US$600 million sale of five-year convertible notes with half the proceeds to be used to repurchase US$300 million of existing notes. The notes were issued in 2018 and are set to mature in 2023 with Xero currently paying 2.375 percent interest.Given the fall in interest rates, the repurchase will cost Xero between US$30 million and US$40 million, which will be booked against income for the year ending March 2021.The new convertible notes will have a zero coupon, but will convert at between a 27.5 percent to 35 percent premium...

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