Fiserv Inc. (FISV) has priced its public offering of senior notes totaling $750 million. The notes consist of 3.125% senior notes totaling $300 million that mature in 2015 and 4.625% senior notes aggregating $450 million that mature in 2020.
Credit Suisse, Wells Fargo Securities and SunTrust Robinson Humphrey are the joint book-running managers for the offering. The offering is expected to close September 21, 2010, subject to customary closing conditions.
Fiserv intends to use the net proceeds of the offering to fund the redemption of up to $250 million of its 6.125% senior notes due 2012. Earlier, Fiserv commenced a tender offer to purchase these senior notes. Holders who validly tender their notes will receive $1,070 for each $1,000 principal amount of notes accepted for purchase. This offer will expire on October 12, 2010.
The remaining net proceeds will be used to repay a portion of its outstanding borrowings under its term loan credit facility.
We believe the balance sheet of the company is already highly leveraged. In the first six months of 2010, Fiserv repaid approximately $200 million of long-term debt, which reduced its total outstanding long-term debt to approximately $3.4 billion as of June 30, 2010. At the end of the second quarter, Fiserv had cash and equivalents of only $338.0 million.
The long-term debt primarily consists of $1.68 billion under an unsecured senior term loan facility which matures in November 2012. In addition, Fiserv has $1.25 billion of 6.125% senior notes due in November 2012 and $500 million of 6.8% senior notes due in November 2017.
Fiserv also maintains a $900 million revolving credit facility with a syndicate of banks, which expires on March 24, 2011. As of June 30, 2010, Fiserv issued letters of credit totaling $30 million under this facility.
Credit Suisse, Wells Fargo Securities and SunTrust Robinson Humphrey are the joint book-running managers for the offering. The offering is expected to close September 21, 2010, subject to customary closing conditions.
Fiserv intends to use the net proceeds of the offering to fund the redemption of up to $250 million of its 6.125% senior notes due 2012. Earlier, Fiserv commenced a tender offer to purchase these senior notes. Holders who validly tender their notes will receive $1,070 for each $1,000 principal amount of notes accepted for purchase. This offer will expire on October 12, 2010.
The remaining net proceeds will be used to repay a portion of its outstanding borrowings under its term loan credit facility.
We believe the balance sheet of the company is already highly leveraged. In the first six months of 2010, Fiserv repaid approximately $200 million of long-term debt, which reduced its total outstanding long-term debt to approximately $3.4 billion as of June 30, 2010. At the end of the second quarter, Fiserv had cash and equivalents of only $338.0 million.
The long-term debt primarily consists of $1.68 billion under an unsecured senior term loan facility which matures in November 2012. In addition, Fiserv has $1.25 billion of 6.125% senior notes due in November 2012 and $500 million of 6.8% senior notes due in November 2017.
Fiserv also maintains a $900 million revolving credit facility with a syndicate of banks, which expires on March 24, 2011. As of June 30, 2010, Fiserv issued letters of credit totaling $30 million under this facility.
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