Xerox increases cap in tender offers for senior notes due 2025

By Wendy Van Sickle

Columbus, Ohio, March 5 – Xerox Holdings Corp. announced it was increasing the maximum principal amount of $750 million of outstanding 5% senior notes due 2025 (Cusip: 98421MAA4, U98401AA7) that it will purchase under a tender offer announced Monday to $362 million from $94 million, according to a Tuesday press release.

Pricing will be calculated based on the 2% U.S. Treasury due Aug. 15, 2025 and a fixed spread of 85 basis points.

As previously reported, concurrently Xerox Corp. is offering to purchase any and all of its $300 million outstanding 3.8% senior notes due 2024 (Cusip: 984121CJO). Pricing will be determined based on the ¼% U.S. Treasury due May 15, 2024 and a fixed spread of zero bps.

For each series, the total consideration will include an early tender payment of $30 per $1,000 principal amount of notes tendered by the early tender date. Holders tendering after the early tender date will only be eligible to receive the tender offer consideration, which is the total consideration less the early tender payment.

In addition, the company will pay accrued interest.

The early tender date is 5 p.m. ET on March 15, which is also the withdrawal deadline.

Pricing will be determined at 10 a.m. ET on March 18.

If the company elects to have an early settlement date, it would be on March 20.

The offers will expire at 5 p.m. ET on April 1.

Final settlement is expected to be on April 3.

Xerox Holdings noted that it may, but is under no obligation to, increase the tender cap with respect to the 2025 notes.

The offers are subject to a financing condition but are not conditioned on the tender of any minimum principal amount of securities.

Concurrently with the commencement of the tender offers, the company also announced that it is offering, subject to market conditions, $400 million of senior notes due 2029.

Citigroup Global Markets Inc. (800 558-3745) is the dealer manager for the tender offers.

Global Bondholder Services Corp. (855 654-2014 or 212 430-3774) is the tender and information agent.

Xerox is a supplier of print and digital document products and services. The company is based in Norwalk, Conn.

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