8-KOther EventsExhibits & Filings

VISA INC. 8-K Report, Corporate Update (Jun 1, 2022)

Filed June 1, 2022For Securities:V

Summary

Visa Inc. announced the successful completion of a significant debt offering, raising a total of approximately €3.0 billion (equivalent to roughly $3.14 billion USD after currency conversion and accounting for net proceeds). This offering consisted of three tranches of senior notes: €1.35 billion maturing in 2026 at a 1.500% coupon, €1.0 billion maturing in 2029 at a 2.000% coupon, and €0.65 billion maturing in 2034 at a 2.375% coupon. The proceeds from this issuance will be utilized for general corporate purposes, which may include the refinancing of existing debt obligations. This strategic move by Visa indicates a proactive approach to managing its capital structure and potentially optimizing its borrowing costs. The notes are unsecured obligations and were issued under Visa's existing shelf registration statement.

Key Highlights

  • 1Visa Inc. successfully completed a multi-tranche senior notes offering totaling approximately €3.0 billion (around $3.14 billion USD net proceeds).
  • 2The offering includes €1.35 billion in 1.500% notes due 2026, €1.0 billion in 2.000% notes due 2029, and €0.65 billion in 2.375% notes due 2034.
  • 3Proceeds are designated for general corporate purposes, including potential refinancing of existing debt.
  • 4The notes are unsecured and issued under Visa's automatic shelf registration statement on Form S-3.
  • 5The issuance occurred on June 1, 2022, with an Underwriting Agreement dated May 24, 2022.
  • 6The notes carry annual interest payments starting in June 2023.
  • 7Optional redemption clauses are included, with varying make-whole and par call provisions depending on the note's maturity.

Frequently Asked Questions

Visa raised a total of €3.0 billion in aggregate principal amount across three tranches of senior notes. After deducting underwriting discounts and estimated offering expenses, the company received net proceeds of approximately $3.14 billion USD.

The net proceeds will be used for general corporate purposes, which may include the refinancing of existing indebtedness. This suggests Visa is managing its debt profile and potentially seeking to lower its overall cost of borrowing or extend debt maturities.

The senior notes issued are unsecured obligations of Visa Inc.

The offering consists of: - €1,350,000,000 of 1.500% Senior Notes due 2026. - €1,000,000,000 of 2.000% Senior Notes due 2029. - €650,000,000 of 2.375% Senior Notes due 2034. Interest payments are made annually on June 15, commencing on June 15, 2023.