Published on 9/20/2018 in the Prospect News Investment Grade Daily.
New Issue: Fiserv prices $2 billion of fixed-rate senior notes in two tranches
By Cristal Cody
Tupelo, Miss., Sept. 20 – Fiserv, Inc. sold $2 billion of senior notes (Baa2/BBB) in two parts on Thursday, according to an FWP filing with the Securities and Exchange Commission.
A $1 billion tranche of 3.8% five-year notes priced at 99.954 to yield 3.81%, or a spread of Treasuries plus 85 basis points.
Fiserv sold $1 billion of 4.2% 10-year notes at 99.805 to yield 4.224%. The notes priced with a Treasuries plus 115 bps spread.
Wells Fargo Securities LLC, U.S. Bancorp Investments Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch, MUFG, PNC Capital Markets LLC and SunTrust Robinson Humphrey Inc. were the bookrunners.
Proceeds will be used to repay debt under the company’s revolving credit facility and term loan and to purchase $450 million of its 4.625% senior notes due 2020 in a tender offer.
Fiserv is a Brookfield, Wis., provider of financial services technology.
| Issuer: | Fiserv, Inc.
|
| Amount: | $2 billion
|
| Description: | Senior notes
|
| Bookrunners: | Wells Fargo Securities LLC, U.S. Bancorp Investments Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch, MUFG, PNC Capital Markets LLC and SunTrust Robinson Humphrey Inc.
|
| Co-managers: | BMO Capital Markets Corp., Citizens Capital Markets, Inc., Credit Suisse Securities (USA) LLC, TD Securities (USA) LLC, BB&T Capital Markets, Williams Capital Group, LP, Huntington Investment Co., KeyBanc Capital Markets Inc., Comerica Securities, Inc. and Samuel A. Ramirez & Co., Inc.
|
| Trade date: | Sept. 20
|
| Settlement date: | Sept. 25
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | Oct. 1, 2023
|
| Coupon: | 3.8%
|
| Price: | 99.954
|
| Yield: | 3.81%
|
| Spread: | Treasuries plus 85 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps before Sept. 1, 2023; thereafter at par
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | Oct. 1, 2028
|
| Coupon: | 4.2%
|
| Price: | 99.805
|
| Yield: | 4.224%
|
| Spread: | Treasuries plus 115 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps before July 1, 2028; thereafter at par
|
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