Summary
This 8-K filing by Fiserv, Inc. (FISV) on September 25, 2018, primarily announces the successful completion of a significant debt offering. The company issued $1 billion in 3.800% Senior Notes due 2023 and $1 billion in 4.200% Senior Notes due 2028, totaling $2 billion in aggregate principal amount. This offering provides Fiserv with substantial capital, likely for general corporate purposes, potential acquisitions, or strategic initiatives. Investors should note the specific interest rates and maturity dates, as well as the terms related to redemption and change of control provisions, which are standard for such debt issuances. The filing also confirms these notes are registered under the Securities Act of 1933.
Key Highlights
- 1Fiserv, Inc. successfully issued $2 billion in aggregate principal amount of senior notes.
- 2The issuance consists of $1 billion of 3.800% Senior Notes due 2023.
- 3The issuance also includes $1 billion of 4.200% Senior Notes due 2028.
- 4These notes were issued under an existing Indenture, supplemented by specific indentures for each note series.
- 5The interest rates are subject to adjustment based on debt rating agency actions.
- 6The company has the option to redeem the notes at a 'make-whole' price before specific dates, and at par thereafter.
- 7A change of control triggering event requires Fiserv to offer to repurchase the notes at 101% of their principal amount.
Frequently Asked Questions
The filing does not explicitly state the purpose for the issuance of these senior notes. However, such offerings are typically used for general corporate purposes, to fund acquisitions, refinance existing debt, or support strategic initiatives.
Fiserv issued $1 billion of 3.800% Senior Notes due October 1, 2023, and $1 billion of 4.200% Senior Notes due October 1, 2028. Both series pay interest semi-annually and have provisions for early redemption and repurchase upon a change of control.
Yes, Fiserv can redeem the 2023 Notes at a 'make-whole' price before September 1, 2023, and the 2028 Notes at a 'make-whole' price before July 1, 2028. After these dates, the notes can be redeemed at 100% of the principal amount. Additionally, a change of control event triggers an offer to repurchase the notes.
Investors face risks common to bondholders, including interest rate risk (as rates can adjust based on credit ratings) and credit risk (the possibility of default). Additionally, if Fiserv undergoes a change of control, the notes may be repurchased, potentially affecting the investment timeline. The specific terms of redemption also influence potential yield realization.