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Centreville-based company to use funds for acquisitions, working capital
Sydney Lake //August 19, 2020//
Centreville-based company to use funds for acquisitions, working capital
Sydney Lake// August 19, 2020//
Centreville-based technology contractor Parsons Corp. announced Monday plans to raise $350 million through a debt offering.
Proceeds from the debt offering would be used toward general corporate purposes, including acquisitions and working capital, according to Parsons. The initial conversion rate for the notes is 22.2913 shares of the company’s common stock per $1,000 principal amount of notes — or approximately $44.86 per share.
Parsons plans to use approximately $36 million of the net proceeds from debt offering to pay the net cost of the convertible note hedge transactions, with the remaining amount going to general corporate purposes including potential acquisitions and working capital.
The notes will bear an annual interest rate of 0.25%, which can be paid on Feb. 15 and Aug. 15 of each year, beginning on Feb. 15, 2021. Notes will mature on Aug. 15, 2025, unless they are repurchased, redeemed or converted.
Founded in 1944, Parsons provides technology services to defense, security and infrastructure customers. This year, the company ranked No. 648 on the Fortune 1000 list reporting nearly $4 billion in 2019 revenue.
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