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DEBT OBLIGATIONS | 3 Months Ended
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Mar. 31, 2024
DEBT OBLIGATIONS |
DEBT OBLIGATIONS | (10) DEBT OBLIGATIONS Debt obligations consist of the following:
|  | As of |
(in millions) |  | March 31, 2024 |  |  | December 31, 2023 |
Credit Facility: |  |  |  |
Revolving credit agreement |  | $ | 619.5 |  |  | $ | 536.9 |
Notes: |  |  |  |
0.75% Convertible Notes, unsecured, due 2049 |  | 525.0 |  |  | 525.0 |
1.375% Senior Notes, due 2026 |  | 646.9 |  |  | 662.2 |
Uncommitted credit agreements |  | 150.0 |  |  | 150.0 |
Other obligations |  | 0.2 |  |  | 0.3 |
Total debt obligations |  | 1,941.6 |  |  | 1,874.4 |
Unamortized debt issuance costs |  | (7.6 | ) |  | (8.7 | )
Carrying value of debt |  | 1,934.0 |  |  | 1,865.7 |
Short-term debt obligations and current maturities of long-term debt obligations |  | (675.2 | ) |  | (150.3 | )
Long-term debt obligations |  | $ | 1,258.8 |  |  | $ | 1,715.4 |
Credit Facility On October 24, 2022, the Company amended its revolving credit agreement (the “Credit Facility”) to increase the facility from $1.03 billion to $1.25 billion and to extend the expiration to October 24, 2027. The revolving credit facility contains a sublimit of up to $250 million, with $150 million committed, for the issuance of letters of credit and a $75 million sublimit for U.S. dollar swingline loans and a $75 million sublimit for swingline loans in euros or British pounds sterling. The Credit Facility allows for borrowings in British pounds sterling, euro and U.S. dollars. Subject to certain conditions, the Company has the option to increase the credit facility by up to an additional $500 million by requesting additional commitments from existing or new lenders. Fees and interest on borrowings vary based upon the Company's corporate credit rating and will be based, in the case of letter of credit fees, on a margin, and in the case of interest, on a margin over a secured overnight financing rate, as defined in the agreement, with a margin, including the facility fee, ranging from 1.00% to 1.625% or the base rate, as selected by the Company. The applicable margin for borrowings under the credit facility, based on the Company's current credit rating is 1.25% including the facility fee. The Agreement contains customary affirmative and negative covenants, events of default and financial covenants, including (all as defined in the Credit Facility): (i) a Consolidated Total Leverage Ratio, depending on certain circumstances defined in the Credit Facility, not to exceed a range between 3.5 to 1.0 and 4.5 to 1.0; and (ii) a Consolidated Interest Coverage Ratio of not less than 3.0 to 1.0. Subject to meeting certain customary covenants (as defined in the Credit Facility), the Company is permitted to repurchase common stock and debt. The Company was in compliance with all debt covenants as of March 31, 2024. Convertible Notes On March 18, 2019, the Company completed the sale of $525.0 million of Convertible Senior Notes ("Convertible Notes"). The Convertible Notes mature in March 2049 unless redeemed or converted prior to such date, and are convertible into shares of Euronet common stock at a conversion price of approximately $188.73 per share if certain conditions are met (relating to the closing price of Euronet common stock exceeding certain thresholds for specified periods). Holders of the Convertible Notes have the option to require the Company to purchase their notes on each of March 15, 2025, March 15, 2029, March 15, 2034, March 15, 2039 and March 15, 2044 at a repurchase price equal to 100% of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the relevant repurchase date. In connection with the issuance of the Convertible Notes, the Company recorded $12.8 million in debt issuance costs, which are being amortized through March 1, 2025. The Company may redeem for cash all or any portion of the Convertible Notes, at its option, (i) if the closing sale price of the Company's Common Stock has been at least 130 % of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption and (ii) on or after March 20, 2025 and prior to the maturity date, regardless of the foregoing sale price condition, in each case at a redemption price equal to 100% of the principal amount of the Convertible Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. No sinking fund is provided for the Convertible Notes. In addition, if a fundamental change, as defined in the Indenture, occurs prior to the maturity date, holders may require the Company to repurchase for cash all or part of their Convertible Notes at a repurchase price equal to 100% of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. As of March 31, 2024, the conversion threshold was not met. Contractual interest expense for the Convertible Notes was $1.0 million for the three months ended March 31, 2024 and 2023 respectively. 1.375% Senior Notes due 2026 On May 22, 2019, the Company completed the sale of €600.0 million ($669.9 million) aggregate principal amount of Senior Notes that are due in May 2026 (the “Senior Notes”). The Senior Notes accrue interest at a rate of 1.375% per year, payable annually in arrears commencing May 22, 2020, until maturity or earlier redemption. As of March 31, 2024, the Company has outstanding €600.0 million ($646.9 million) principal amount of the Senior Notes. In addition, the Company may redeem some or all of these notes on or after February 22, 2026 at their principal amount plus any accrued and unpaid interest. Uncommitted Credit Agreements On June 26, 2023, the Company entered into an Uncommitted Loan Agreement for $150 million, fully drawn and outstanding at March 31, 2024, for the sole purpose of providing vault cash for ATMs, that expires no later than June 21, 2024. The loan is a Prime rate loan, a Bloomberg Short-term Bank Yield ("BSBY") rate loan plus 0.95% or bears interest at the rate agreed to by the Bank and the Company at the time such loan is made. The weighted-average interest rate from the loan inception date to March 31, 2024 was 6.31%. Other obligations Certain of the Company's subsidiaries have available lines of credit and overdraft credit facilities that generally provide for short-term borrowings that are used from time to time for working capital purposes. As of March 31, 2024 and December 31, 2023, borrowings under these arrangements were $0.2 million and $0.3 million, respectively. Debt Issuance Costs As of March 31, 2024, the Company had unamortized debt issuance costs of $2.9 million for the Credit Facility, $2.1 million for the Convertible Notes and $2.6 million for the Senior Notes that will be amortized through October 2027, March 2025 and May 2026, respectively.

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