San Juan-based transaction processing firm EVERTEC Inc. announced Monday the start of an underwritten public offering of 15,287,473 shares of its common stock by an affiliate of Apollo Global Management, LLC, Popular Inc., and certain company officers and employees.
The selling stockholders will receive all of the proceeds from the offering, the company noted.
In addition, EVERTEC announced it would repurchase $75 million of its common stock being sold in the offering, at the price per share paid by the underwriters to the selling stockholders.
EVERTEC will cancel the repurchased shares and they will no longer be outstanding following completion of the offering. EVERTEC intends to fund the share repurchase with approximately $25 million in cash on hand and approximately $50 million of borrowings under its revolving credit facility.
Assuming the share repurchase took place at the beginning of the year, EVERTEC believes that it will result in approximately 4 percent accretion to estimated 2013 adjusted net income per diluted share.
Goldman, Sachs & Co., and J.P. Morgan Securities LLC are acting as underwriters for the offering. The offering is being made only by means of a preliminary prospectus.