Global Payments Inc.'s Proposed Convertible Senior Notes Due 2031 Rated 'BBB-'

BOSTON (S&P Global Ratings) Feb. 20, 2024--S&P Global Ratings today assigned its 'BBB-' issue-level rating to Global Payments Inc.'s proposed dollar-denominated convertible senior notes due 2031. The company will use the net proceeds from this offering to pay down its outstanding commercial paper and for general corporate purposes. While Global Payments' S&P Global Ratings-adjusted debt to EBITDA remains high (roughly 4x as of Dec. 31, 2023), we expect it will limit its share repurchases and continue to prioritize deleveraging below 3.5x. We forecast the company will increase its revenue by 5%-6%, primarily on steady transaction flow and a moderate expansion in its EBITDA margin due to its integration of EVO, through 2024 and 2025, which will aid its deleveraging. Global

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