CSG Systems International Inc., which provides software and services that manage customer service for cable and satellite TV companies, said Monday it has agreed to spend about $125 million to buy back about $120 million in outstanding senior debt in an effort to reduce interest payments.
The 2.5 percent senior subordinated convertible contingent debt securities were issued in 2004 and were scheduled to mature in 2024. CSG said it will pay for the notes with general corporate funds, including net proceeds of about $116 million from the recent sale of convertible debt.
The repurchase and the convertible notes offering together are expected to lower CSG's earnings per share by 18 cents to 20 cents in 2010.
Shares fell 26 cents to $21.72 in afternoon trading.