Summary
Fiserv, Inc. (FISV) filed an 8-K on June 14, 2011, detailing significant debt financing activities. The company successfully issued $1 billion in aggregate principal amount of new senior notes, comprising $600 million of 3.125% Senior Notes due 2016 and $400 million of 4.750% Senior Notes due 2021. These new notes are guaranteed by certain wholly-owned domestic subsidiaries and were issued under an existing indenture, supplemented by new supplemental indentures. Concurrently, Fiserv completed a tender offer for its 6.125% Senior Notes due 2012, repurchasing approximately $699.8 million of these notes. The remaining outstanding 2012 notes, totaling approximately $300.2 million, will be redeemed on July 14, 2011. The proceeds from the new note issuance were used to fund the repurchase and redemption of the 2012 notes. This move indicates a refinancing strategy to potentially lower interest costs and extend debt maturities.
Key Highlights
- 1Issuance of $600 million in 3.125% Senior Notes due 2016.
- 2Issuance of $400 million in 4.750% Senior Notes due 2021.
- 3Total new debt issuance of $1 billion.
- 4Repurchase of approximately $699.8 million of 6.125% Senior Notes due 2012 via tender offer.
- 5Redemption of remaining ~$300.2 million of 6.125% Senior Notes due 2012 on July 14, 2011.
- 6Use of proceeds from new note issuance to fund the repurchase and redemption of older notes.
- 7New notes are guaranteed by certain domestic subsidiaries on a senior unsecured basis.