Site menu

Search by ticker code:
Generic filters

Menu

Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Xero Limited (ASX:XRO) Shares Fall 3% On US$300m Notes Offer

The Xero Limited (ASX:XRO) share price is down 3% after revealing a US$300 million convertible notes due 2023 offering and a FY19 trading update.

The Xero Limited (ASX: XRO) share price fell 3% on Thursday morning after revealing a US$300 million convertible notes offering (due 2023) and an FY19 trading update.

Xero is one of the world’s largest cloud accounting software businesses.

The Xero Convertible Notes:

[emaillocker]

Xero plans to use the net proceeds of ~US$242 million, after paying for items such as certain debt, to fund potential acquisitions and investments into strategic and complementary businesses.

The notes will have an interest rate of 2.375% per year, will be listed on the Singapore Exchange and are due 2023. The initial conversion price of the notes is US$46.3386 per share, which represents a 30% premium.

Xero CEO Steve Vamos said: “This structure has been adopted to drive the right balance between providing flexibility for Xero and reducing potential dilution of existing shareholders.”

According to Mr Vamos, global demand for the offer was very pleasing.

The Trading Update:

Xero expects cash outflow in FY19 will reduce compared to FY18. Before taking into account of recent acquisitions and alliances, Xero said that revenue would be between NZ$528 million to NZ$558 million, which compares to NZ$406.6 million revenue in the FY18 report. Underlying EBITDA (click here to learn what EBITDA is) is projected to be NZ$66 million to NZ$94 million.

Despite being down today, the Xero share price is up 80% over the past year.

[/emaillocker]

The Best* Finance Podcast On Earth

The Rask Group’s Australian Investors Podcast is fast becoming Australia’s #1 podcast for serious investors. It provides unique insights from Australia’s best investors, entrepreneurs, authors and financial thinkers. Download the latest episode free on iTunes,  CastboxYouTube or wherever you choose to listen.

Here’s a timeless interview with former stockbroker, Charlie Aitken.

*As voted by us

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content