Pitney Bowes Inc. has opened a tender offer to buy back up to $75 million of its outstanding debt, targeting the 6.70% Notes due 2043 and the 5.250% Medium‑Term Notes due 2037. Holders may submit tendered amounts up to the aggregate principal of $75 million, with the offer expiring on December 19, 2025 and expected settlement around December 23, 2025.
The repurchase is part of the company’s broader capital‑structure optimization plan. In August 2025 Pitney Bowes issued $200 million of low‑coupon convertible debt to improve leverage, and it has set a target of a 3.0× leverage ratio by the end of 2025. By reducing long‑term debt, the company aims to lower its interest expense and free cash flow, supporting ongoing cost‑cutting initiatives that are projected to deliver $50‑$60 million in recurring savings by 2026.
Financially, the $75 million buyback will shrink total debt by roughly 4 % and improve the debt‑to‑equity ratio from 1.8× to 1.7×, while the interest‑coverage ratio is expected to rise from 3.2× to 3.4×. The reduction also brings the company closer to its 3.0× leverage target, enhancing its ability to invest in high‑return growth opportunities.
CEO Lance Rosenzweig emphasized that the move strengthens the balance sheet and supports the company’s free‑cash‑flow goals. CFO Paul Evans noted that the repurchase aligns with the firm’s disciplined cost‑management program and will help maintain profitability even as the company continues to invest in technology and customer service.
Analysts have maintained a “Hold” consensus on the stock, with a price target around $11.00. The debt‑repurchase is viewed as a prudent step in the company’s deleveraging strategy, though it does not immediately alter the company’s earnings outlook.
The tender offer will close on December 19, with settlement expected on December 23. Pitney Bowes will report the impact on its financial statements in the next quarterly filing, where investors can assess the precise effect on leverage and interest expense.
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