Summary
Fiserv, Inc. (FISV) filed an 8-K on May 20, 2015, reporting on two significant financing activities. Firstly, the company entered into an Underwriting Agreement to issue $1.75 billion in aggregate principal amount of Senior Notes, consisting of $850 million of 2.700% Notes due 2020 and $900 million of 3.850% Notes due 2025. This offering is expected to close on May 22, 2015. Secondly, Fiserv announced its intention to redeem its outstanding $600 million of 3.125% senior notes due 2016 and $500 million of 6.800% senior notes due 2017. The redemption is scheduled for June 18, 2015, and will occur at the applicable "make-whole" redemption price plus accrued interest. These actions suggest Fiserv is proactively managing its debt structure, potentially refinancing higher-cost debt with new, lower-interest notes.
Key Highlights
- 1Fiserv entered into an Underwriting Agreement to issue $1.75 billion in Senior Notes.
- 2The new debt issuance includes $850 million in 2.700% Senior Notes due 2020.
- 3The new debt issuance also includes $900 million in 3.850% Senior Notes due 2025.
- 4The public offering of new notes is expected to close on May 22, 2015.
- 5Fiserv is redeeming all outstanding $600 million of 3.125% senior notes due 2016.
- 6Fiserv is also redeeming all outstanding $500 million of 6.800% senior notes due 2017.
- 7The redemption of the older notes is scheduled for June 18, 2015.