8-KMaterial AgreementsFinancial EventsOther Events+1

FISERV INC 8-K Report, Material Agreement (Aug 21, 2023)

Filed August 21, 2023For Securities:FISV

Summary

Fiserv, Inc. (FISV) announced the successful completion of a significant debt offering, raising a total of $2 billion through the issuance of senior notes. The offering includes $700 million in 5.375% Senior Notes due 2028 and $1.3 billion in 5.625% Senior Notes due 2033. These notes were issued under existing indenture agreements, with the terms finalized through supplemental indentures. The primary purpose of this filing is to inform investors about the terms and conditions of this new debt issuance. Key details include the interest rates, maturity dates, and provisions for optional redemption and repurchase upon a change of control. This move suggests Fiserv is strategically managing its capital structure, potentially for general corporate purposes, acquisitions, or refinancing existing debt. Investors should monitor how this new debt impacts the company's leverage ratios and overall financial health.

Key Highlights

  • 1Fiserv completed a public offering of $2 billion in aggregate principal amount of senior notes.
  • 2The offering comprises $700 million of 5.375% Senior Notes due 2028.
  • 3The offering also includes $1.3 billion of 5.625% Senior Notes due 2033.
  • 4Interest on both series of notes is payable semi-annually.
  • 5The company retains the option to redeem the notes prior to maturity under specific conditions (par call dates).
  • 6Fiserv is required to offer to repurchase the notes at 101% of principal in the event of a change of control triggering event.
  • 7Standard covenants and events of default are included in the indenture agreements.

Frequently Asked Questions

Fiserv issued a total of $2 billion in aggregate principal amount of senior notes, consisting of $700 million of 5.375% Senior Notes due 2028 and $1.3 billion of 5.625% Senior Notes due 2033.

The filing does not explicitly state the specific use of proceeds. However, such debt issuances are typically used for general corporate purposes, potential acquisitions, refinancing existing debt, or other strategic initiatives. Investors should refer to future financial reports or investor presentations for more details on the allocation of these funds.

The 2028 Notes carry an interest rate of 5.375% and mature on August 21, 2028. The 2033 Notes carry an interest rate of 5.625% and mature on August 21, 2033.

In the event of a change of control triggering event, Fiserv is obligated to offer to repurchase the notes from holders at a price of 101% of the aggregate principal amount outstanding, plus any accrued and unpaid interest.