8-KMaterial AgreementsExhibits & Filings

FISERV INC 8-K Report, Material Agreement (Jun 18, 2019)

Filed June 18, 2019For Securities:FISV

Summary

Fiserv, Inc. (FISV) announced on June 18, 2019, a significant financing transaction through an Underwriting Agreement with several underwriters for a public offering of senior notes. This offering includes €1.5 billion in euro-denominated notes across three tranches (2023, 2027, and 2030 maturities) and £1.05 billion in sterling-denominated notes across two tranches (2025 and 2031 maturities). The aggregate principal amount of debt being issued is substantial, indicating a strategic move by Fiserv to raise capital. The offering is expected to close on July 1, 2019. This issuance of new debt suggests that Fiserv is likely funding a significant initiative, such as an acquisition, expansion, or refinancing of existing debt. Investors should pay close attention to the use of proceeds, which is not detailed in this filing but is crucial for understanding the long-term implications of this financing. The pricing of these notes, particularly the relatively low interest rates (0.375% for 2023 euro notes, 1.125% for 2027 euro notes, 1.625% for 2030 euro notes, 2.250% for 2025 sterling notes, and 3.000% for 2031 sterling notes), indicates strong market confidence in Fiserv's creditworthiness at the time of the filing.

Key Highlights

  • 1Fiserv entered into an Underwriting Agreement on June 17, 2019, for a public offering of senior notes.
  • 2The offering includes €1.5 billion in euro-denominated notes (2023, 2027, 2030 maturities) and £1.05 billion in sterling-denominated notes (2025, 2031 maturities).
  • 3The aggregate principal amount of the Notes offered is a combination of €1.5 billion and £1.05 billion.
  • 4The notes carry relatively low interest rates: 0.375% (2023 EUR), 1.125% (2027 EUR), 1.625% (2030 EUR), 2.250% (2025 GBP), and 3.000% (2031 GBP).
  • 5The offering is expected to close on July 1, 2019.
  • 6The Underwriting Agreement includes customary provisions such as representations, warranties, closing conditions, indemnification, and termination clauses.
  • 7The Notes are registered under the Securities Act of 1933 via a Form S-3 filed previously.

Frequently Asked Questions

The filing does not explicitly state the purpose of the debt issuance. However, such a significant capital raise typically indicates funding for strategic initiatives like acquisitions, business expansion, or refinancing existing debt obligations. Investors should look for further disclosures or communications from Fiserv for specific details on the use of proceeds.

Fiserv is issuing €500,000,000 of 0.375% Senior Notes due 2023, €500,000,000 of 1.125% Senior Notes due 2027, €500,000,000 of 1.625% Senior Notes due 2030, £525,000,000 of 2.250% Senior Notes due 2025, and £525,000,000 of 3.000% Senior Notes due 2031. This amounts to a total of €1.5 billion and £1.05 billion in aggregate principal.

The interest rates are: 0.375% for the 2023 euro notes, 1.125% for the 2027 euro notes, 1.625% for the 2030 euro notes, 2.250% for the 2025 sterling notes, and 3.000% for the 2031 sterling notes.

The offering is expected to close on July 1, 2019.