Western Union begins exchange offer for up to $500 million 5.4% notes

By Angela McDaniels

Tacoma, Wash., March 2 - Western Union Co. is offering new notes due April 1, 2020 in exchange for up to $500 million principal amount of its 5.4% notes due 2011, according to a company news release.

The coupon on the new notes will be the yield of the 10-year Treasury plus 135 basis points. It is expected to be set on March 25.

The total exchange price for the old notes is based on a fixed-spread pricing formula and will be calculated at 2 p.m. ET on the second business day prior to the expiration of the exchange offer.

The total exchange price will include an early participation payment for holders of old notes who tender prior to 5 p.m. ET on March 15.

The offer will expire at midnight ET on March 29.

The consummation of the exchange offer is conditioned on, among other things, at least $250 million principal amount of the old notes being validly tendered. If more than $500 million of old notes are tendered, the company will accept notes on a pro rata basis.

The exchange offer is only being made to holders of old notes who have certified to the company in an eligibility letter their status as either "qualified institutional buyers," as defined in Rule 144A under the Securities Act of 1933, or persons other than "U.S. persons," as defined in Rule 902 under the Securities Act.

The information agent is Global Bondholder Services Corp. (866 488-1500 or 212 430-3774).

Western Union is a money-transfer company based in Englewood, Colo.

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