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NCR to retire preferred stock held by Blackstone

NCR Corp. agreed to retire the company's series A convertible preferred stock held by private equity firm Blackstone Group Inc.

NCR will pay Blackstone $302 million in cash in exchange for 237,673 preferred shares and convert its remaining 274,548 shares to approximately 9.16 million shares of common stock. The $302 million in cash was funded through NCR's existing credit facility and cash on hand.

The deal will, among other things, retire 57% of NCR's outstanding preferred stock, eliminate annual preferred stock dividends of $28.5 million and is expected to be accretive to 2020 EPS by approximately 7 cents.

NCR also announced the launch an offering of 9,129,966 shares of common stock to be issued upon the conversion. The shares are being offered solely by entities affiliated with Blackstone and NCR will not receive any of the proceeds of the offering.

Goldman Sachs & Co. LLC and Wells Fargo Securities are acting as underwriters for the offering.

Additionally, NCR reaffirmed its full-year 2019 revenue, cash flow and non-GAAP EPS guidance. But it lowered its GAAP EPS guidance for 2019 to $1.41 to $1.51 from the previous estimate of $1.91 to $2.01, due to the one-time noncash accounting impact of the redemption and conversion of the preferred stock.

The S&P Global Market Intelligence normalized EPS estimate for the year is $2.82.