Pitney Bowes Raises $230M Through Convertible Notes Offering

Pitney Bowes has completed a $230m convertible notes offering, raising $221.4m after expenses. The company plans to use the proceeds for strategic investments, debt management, and capped call transactions to mitigate stock dilution and repurchase shares. The most recent analyst rating on Pitney Bowes stock is a Hold with a $17.00 price target.

Pitney Bowes Inc. (NYSE: PBI) has successfully closed a $230 million offering of 1.50% convertible senior notes due 2030, raising approximately $221.4 million after expenses. The company plans to utilize the proceeds for strategic investments, debt management, and capped call transactions to mitigate potential dilution to its common stock. Additionally, Pitney Bowes intends to repurchase shares of its common stock.

The company's Chief Executive Officer, Kurt Wolf, stated, "Our ability to complete this capital raise on favorable terms demonstrates that Pitney Bowes is a revitalized organization with a significant runway for continued value creation. Two years ago, Pitney Bowes had a stock price near all-time lows, extremely burdensome debt, and an unsustainable operating model. Today, we’re a hard-charging, highly disciplined enterprise with two market-leading businesses that are producing consistently strong earnings and cash flow. We believe this Offering supports our previously disclosed goals of investing in growth, returning capital to shareholders, strengthening our balance sheet, and attracting analyst interest in our increasingly compelling transformation story."

The net proceeds from the offering were approximately $221.4 million, after deducting initial purchasers' discounts and commissions and estimated offering expenses. Pitney Bowes allocated approximately $24.7 million of the net proceeds to fund the cost of entering into capped call transactions and approximately $61.9 million to repurchase shares of its common stock in privately negotiated transactions. The remaining funds will be used for general corporate purposes and other strategic investments, including reinvestments in the company's business, repayment or refinancing of debt, and initiatives designed to reduce the company's leverage or average borrowing cost.

In connection with the pricing of the convertible notes, Pitney Bowes entered into capped call transactions with certain initial purchasers and financial institutions. These transactions are expected to reduce potential dilution to the company's common stock upon conversion of notes, with a cap price initially set at $22.36 per share, representing a premium of 100% over the last reported sale price of the company's common stock.

The most recent analyst rating on Pitney Bowes stock is a Hold with a $17.00 price target.

For additional information regarding the terms of the transactions, please see the Company's Current Report on Form 8-K, filed with the Securities and Exchange Commission on August 8, 2025.

References:

[1] Pitney Bowes Inc. Announces Closing of $230 Million Offering of Convertible Senior Notes. (2025). Morningstar. Retrieved from https://www.morningstar.com/news/business-wire/20250811693505/pitney-bowes-inc-announces-closing-of-230-million-offering-of-convertible-senior-notes

[2] Pitney Bowes Inc. Announces Closing of $230 Million Offering of Convertible Senior Notes. (2025). Marketscreener. Retrieved from https://www.marketscreener.com/news/pitney-bowes-inc-announces-closing-of-230-million-offering-of-convertible-senior-notes-ce7c5ed2df80fe22