Planet Payment (PLPM) – Odd Lot Tender Offer – minimal upside currently

Current Price – $3,43

Offer Price – $3,2- $3,6

Upside – potentially 5% or $17 (if the upper pricing limit is used)

Expiration date –  11 April 2016

SEC Filling

 

Summary:

Planet Payment today announced that it intends to commence a modified “Dutch auction” tender offer to repurchase for cash certain of its outstanding shares of common stock for an aggregate purchase price of no more than $15.0 million.  The tender offer was approved by the Board of Directors on March 9, 2016.  The Company intends to commence the tender offer as soon as reasonably practicable and the tender offer will remain open for at least twenty business days following the date of the commencement of the tender offer. After the tender offer commences, the Company’s stockholders will be able to tender all or a portion of their shares (1) at a price specified by the tendering stockholder of not less than $3.20 and not greater than $3.60 per share

 

Odd lot holders

If you own, beneficially or of record, 99 or fewer shares in the aggregate, you validly tender all of these shares at or below the Purchase Price prior to the Expiration Time (and do not validly withdraw such shares) and you complete the section entitled "Odd Lots" in the Letter of Transmittal and, if applicable, in the Notice of Guaranteed Delivery, and all conditions to the Offer are satisfied or waived, we will purchase all of your shares without subjecting them to proration.

 

Source and amount of funds

Assuming the Offer is fully subscribed, we expect the aggregate purchase price for the shares, together with all related fees and expenses, to be approximately $15.4 million. We intend to fund the purchase of the shares tendered in the Offer and related fees and expenses with approximately $5.0 million from cash on hand and the remaining amount from borrowings under the Credit Facility. As of February 29, 2016, we had approximately $14.7 million of cash on hand, and $20.0 million available under the Credit Facility. The Offer is not conditioned upon financing.