8-KMaterial AgreementsFinancial EventsOther Events+1

FISERV INC 8-K Report, Material Agreement (May 13, 2020)

Filed May 13, 2020For Securities:FISV

Summary

Fiserv, Inc. (FISV) announced on May 13, 2020, the successful closing of a public offering for $2 billion in senior notes. This offering comprised $1 billion of 2.250% Senior Notes due 2027 and $1 billion of 2.650% Senior Notes due 2030. The issuance of these notes signifies a strategic move to raise capital, likely for general corporate purposes or to manage its existing debt structure. Investors should note the relatively low interest rates on these notes, suggesting favorable borrowing conditions for Fiserv at the time. The terms of the notes include provisions for optional redemption by Fiserv under specific conditions, including a 'par call' option prior to maturity, and a mandatory repurchase offer to bondholders in the event of a change of control triggering event. These features are standard for corporate debt offerings and provide Fiserv with some flexibility in managing its debt obligations. The filing incorporates by reference standard legal agreements, including the underwriting agreement and supplemental indentures, which contain typical covenants and events of default.

Key Highlights

  • 1Fiserv completed a $2 billion offering of senior notes, split equally between $1 billion of 2.250% notes due 2027 and $1 billion of 2.650% notes due 2030.
  • 2The notes were issued under Fiserv's existing Indenture dated November 20, 2007, with supplemental indentures for each series.
  • 3The 2027 Notes bear a coupon of 2.250% and mature on June 1, 2027, with semi-annual interest payments.
  • 4The 2030 Notes bear a coupon of 2.650% and mature on June 1, 2030, with semi-annual interest payments.
  • 5Fiserv has the option to redeem the notes prior to maturity at a price based on treasury rates plus 30 basis points (for 2027 Notes) or 30 basis points (for 2030 Notes), plus accrued interest.
  • 6A 'change of control triggering event' requires Fiserv to offer to repurchase the notes at 101% of their principal amount plus accrued interest.
  • 7The offering was underwritten by major financial institutions including BofA Securities, Citigroup Global Markets, J.P. Morgan Securities, and Wells Fargo Securities.

Frequently Asked Questions

This 8-K filing announces the completion of Fiserv's public offering and issuance of $2 billion in senior notes, specifically $1 billion of 2.250% Senior Notes due 2027 and $1 billion of 2.650% Senior Notes due 2030. It details the terms, conditions, and agreements related to this debt issuance.

Fiserv raised $2 billion in capital through this offering, which can be used for various corporate purposes such as funding operations, investments, or refinancing existing debt. The relatively low interest rates (2.250% and 2.650%) suggest that Fiserv was able to secure favorable borrowing terms at the time.

Bondholders are protected by a 'change of control triggering event' clause, which mandates that Fiserv must offer to repurchase the notes at 101% of their principal amount plus accrued interest if such an event occurs. Additionally, the indenture includes customary events of default that could lead to acceleration of the debt.

Yes, Fiserv has the option to redeem both the 2027 and 2030 Notes prior to their respective maturities under specific conditions. This 'optional redemption' feature allows Fiserv to refinance at lower rates or adjust its capital structure if market conditions become favorable.