Summary
Fiserv, Inc. (FISV) has announced the successful closing of a substantial debt offering, raising a total of $1.75 billion through the issuance of senior notes. Specifically, the company issued $850 million in 4.750% Senior Notes due 2030 and $900 million in 5.150% Senior Notes due 2034. This move signifies a strategic effort by Fiserv to bolster its capital structure and potentially fund future growth initiatives or refinance existing debt. The new notes come with specific interest rates and maturity dates, with provisions for optional redemption and repurchase upon a change of control triggering event. Investors should note the total aggregate principal amount and the varying interest rates and maturity profiles of the two tranches of notes. The ability for Fiserv to redeem these notes prior to their maturity dates, at a premium linked to Treasury rates, provides the company with financial flexibility. Furthermore, the inclusion of a change of control provision offers a degree of protection to noteholders in the event of significant corporate changes. The filing incorporates these notes under existing indentures and is part of a previously filed registration statement.
Key Highlights
- 1Fiserv successfully closed a public offering of $1.75 billion in aggregate principal amount of senior notes.
- 2The offering consists of $850 million of 4.750% Senior Notes due 2030.
- 3The offering also includes $900 million of 5.150% Senior Notes due 2034.
- 4The notes were issued under an existing Indenture dated November 20, 2007, with supplemental indentures for each note series.
- 5The company has the option to redeem the notes prior to their respective par call dates at a specified premium based on Treasury rates.
- 6A change of control triggering event requires Fiserv to offer to repurchase the notes at 101% of the principal amount plus accrued interest.
- 7The issuance of these notes is registered under a Form S-3 registration statement filed on February 22, 2024.