Summary
Fiserv, Inc. (FISV) announced on March 2, 2023, the successful completion of a significant debt offering, raising a total of $1.8 billion through the issuance of senior notes. This offering comprises $900 million in 5.450% Senior Notes due 2028 and $900 million in 5.600% Senior Notes due 2033. These notes were issued under existing indenture agreements, with supplemental indentures detailing the terms of each series. This move indicates Fiserv's strategy to manage its capital structure and potentially fund future growth initiatives or refinance existing debt. The interest rates are fixed, providing predictability for the company's future interest expense. Investors should note the optional redemption features and the repurchase obligation upon a change of control, which offer certain protections but also imply potential future cash outflows under specific circumstances. The total principal amount raised signifies a substantial commitment to long-term financing.
Key Highlights
- 1Fiserv completed a public offering and issuance of $1.8 billion in aggregate principal amount of senior notes on March 2, 2023.
- 2The offering consists of two tranches: $900 million of 5.450% Senior Notes due 2028 and $900 million of 5.600% Senior Notes due 2033.
- 3The notes were issued under Fiserv's existing indenture dated November 20, 2007, with supplemental indentures executed on March 2, 2023.
- 4The 2028 Notes mature on March 2, 2028, bearing a fixed interest rate of 5.450% payable semi-annually.
- 5The 2033 Notes mature on March 2, 2033, bearing a fixed interest rate of 5.600% payable semi-annually.
- 6The company has the option to redeem these notes prior to their maturity dates under specific conditions and at a calculated redemption price.
- 7Fiserv is obligated to repurchase the notes at 101% of the principal amount plus accrued interest upon a change of control triggering event.