8-KMaterial AgreementsOther EventsExhibits & Filings

FISERV INC 8-K Report, Material Agreement (Sep 15, 2010)

Filed September 15, 2010For Securities:FISV

Summary

Fiserv, Inc. (FISV) filed an 8-K on September 15, 2010, to report two significant capital markets transactions. The company entered into an Underwriting Agreement to issue $300 million of 3.125% Senior Notes due 2015 and $450 million of 4.625% Senior Notes due 2020, guaranteed by certain subsidiaries. This offering aims to raise substantial capital, with the proceeds likely intended for general corporate purposes or strategic initiatives. Concurrently, Fiserv announced a tender offer to repurchase up to $250 million of its outstanding 6.125% Senior Notes due 2012. This move suggests a proactive approach to managing its debt profile, potentially refinancing higher-cost debt with the proceeds from the new note issuance or existing cash. The tender offer includes early tender incentives, indicating a desire for prompt participation from noteholders. Both transactions are expected to close in late September 2010, signaling active financial management by the company.

Key Highlights

  • 1Fiserv issued $300 million in 3.125% Senior Notes due 2015.
  • 2Fiserv issued $450 million in 4.625% Senior Notes due 2020.
  • 3The new notes are guaranteed by certain Fiserv subsidiaries.
  • 4Fiserv launched a tender offer to buy back up to $250 million of its 6.125% Senior Notes due 2012.
  • 5The tender offer includes an early purchase price of $1,100 per $1,000 principal amount for notes tendered by September 27, 2010.
  • 6The tender offer is conditioned upon the completion of the new note offering.

Frequently Asked Questions

Fiserv is issuing a total of $750 million in new debt, comprising $300 million of 3.125% Senior Notes due 2015 and $450 million of 4.625% Senior Notes due 2020.

This strategy likely aims to optimize Fiserv's debt structure and cost of capital. The company may be refinancing its higher-coupon 6.125% notes due 2012 with proceeds from the new, lower-coupon notes, thereby reducing interest expense and potentially extending its debt maturity profile.

The tender offer expires at 11:59 p.m. New York City time on October 12, 2010, unless extended. To receive the higher purchase price of $1,100 per $1,000 principal amount, notes must be validly tendered by 5:00 p.m. New York City time on September 27, 2010.

No, the consummation of the tender offer is conditioned upon the completion of the new note offering, meaning the company will only proceed with buying back its 2012 notes if it successfully closes the issuance of the 2015 and 2020 notes.