8-KMaterial AgreementsExhibits & Filings

VISA INC. 8-K Report, Material Agreement (Aug 31, 2009)

Filed August 31, 2009For Securities:V

Summary

Visa Inc. (V) has filed an 8-K report detailing a material definitive agreement to prepay its remaining settlement obligations related to the 'In re Visa check/MasterMoney Antitrust Litigation'. Originally agreeing to pay $2 billion over ten years, Visa U.S.A. will now prepay its outstanding $800 million in installments for a discounted sum of $682 million. This prepayment is contingent on court approval and is scheduled to occur on or around September 30, 2009. This accelerated settlement offers a significant financial benefit to Visa, reducing its total payment by approximately $118 million. For investors, this agreement represents a positive step towards resolving a long-standing legal liability and enhances the company's cash flow flexibility by extinguishing a future obligation earlier than planned. The reduction in total settlement cost demonstrates effective negotiation and capital management.

Key Highlights

  • 1Visa U.S.A. entered into a Prepayment Agreement to settle remaining obligations from the 'In re Visa check/MasterMoney Antitrust Litigation'.
  • 2The original settlement involved payments of $200 million annually over ten years, totaling $2 billion.
  • 3Visa will prepay the remaining $800 million obligation.
  • 4The prepayment amount is discounted to $682 million, resulting in a saving of approximately $118 million.
  • 5The prepayment is subject to court approval.
  • 6The settlement is expected to be finalized around September 30, 2009.
  • 7This agreement aims to resolve a significant legal liability for Visa.

Frequently Asked Questions

The main purpose of this 8-K filing is to report that Visa U.S.A. has entered into a material definitive agreement to prepay its remaining obligations under a settlement for the 'In re Visa check/MasterMoney Antitrust Litigation' at a discounted amount.

Visa will save approximately $118 million. The remaining $800 million obligation will be paid for $682 million through the prepayment.

No, the prepayment is contingent upon receiving court approval for the Prepayment Agreement. If not approved, the original payment terms would likely remain in effect.

The prepayment is expected to be completed on the later of September 30, 2009, or the business day after the court enters an order approving the Agreement.