Fiserv, Inc. (FISV) recently announced that its previously announced tender offer to purchase 6.125% Senior Notes due 2012 for $1.0 billion expired yesterday.
Fiserv is one of the leading providers of integrated information management and electronic commerce systems and services.
Fiserv will make payment for all of the 2012 Notes validly tendered prior to the expiration of the tender offer, representing a total aggregate principal amount of approximately $699,802,000.
Fiserv will pay accrued and unpaid interest on the notes purchased from the last interest payment date up to, but not including, the settlement date in the amount of $4.08 per $1,000.
Last week, Fiserv priced a public offering of $1.0 billion aggregate principal amount of senior notes. The notes were offered in two categories: $600 million of senior notes that mature in 2016 and bear interest at a rate of 3.125%, and $400 million of senior notes that mature in 2021 and bear interest at a rate of 4.750%.
Management expects to use the proceeds from these notes offering to fund this debt redemption and other corporate purposes. Fiserv expects to incur a loss on debt extinguishment of approximately $53 million after tax.
In May, Fiserv announced that its board of directors has authorized the repurchase of up to 7.5 million shares of the company’s common stock or approximately 5% of its outstanding shares.
Fiserv repurchased $413 million of common stock in 2010. On November 16, 2010, the board of directors authorized the purchase of up to 7.0 million additional shares of common stock. In the first quarter of 2011, Fiserv purchased $252 million of its common stock. As of March 31, 2011, Fiserv had 1.8 million shares remaining under this authorization.
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