CSG Systems plans to price $130 million of seven-year convertibles

By Rebecca Melvin

New York, Feb. 23 - CSG Systems International Inc. said that it plans to price about $130 million of seven-year convertibles in a Rule 144A offering, according to a release.

The offering of senior subordinated convertible notes will have a $20 million greenshoe.

The notes will have contingent conversion and net share settlement, allowing for the principal amount to be paid in cash and any further value in cash, stock or a combination, at CSG's option.

Proceeds are earmarked to fund the repurchase of up to 1.5 million shares of the company's common stock from one of the initial purchasers and for general corporate purposes, which may include the repurchase of part of its $170.3 million of outstanding 2.5% senior subordinated convertible contingent debt securities, which mature in 2024 but are putable in June 2011, and the payment of any related tax liabilities.

The stock repurchase would be part of CSG's existing stock repurchase program and would be paid for concurrently with the issuance of the notes.

Englewood, Colo.-based CSG provides next-generation billing and customer services for the cable television, satellite, advanced internet protocol services, next-generation mobile and fixed wireline markets.

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