Fiserv to draw on credit facilities to help repay First Data debt

By Rebecca Melvin

New York, June 17 – Fiserv Inc. said it is using borrowings under its term loan facility and revolving credit facility, together with proceeds of an offering of euro- and sterling-denominated senior notes and proceeds of $9 billion of recently priced dollar-denominated notes, to finance its planned acquisition of First Data Corp., including refinancing First Data debt.

Fiserv announced plans to acquire First Data for $22 billion in stock in January.

Specifically, the funds will be used to make cash payments in lieu of fractional shares as part of the merger consideration, to pay fees and expenses related to the merger, to refinance debt and to pay for related transactions. Any remaining proceeds will be used for general corporate purposes.

Pending such uses, Fiserv may temporarily invest proceeds from the notes offering in investment-grade securities, money market funds, bank deposit accounts or similar short-term investments, or use such net proceeds to repay outstanding borrowings under its revolving credit facility, according to a company news release.

The euro and sterling offering is being made as part of a shelf registration statement that Fiserv has filed with the Securities and Exchange Commission.

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